Chapter 16: Loss Limitations (At-Risk, Passive Activity, and Other)

In this section

• At-Risk Rules and Material vs. Non-Material Participation
  Explore in-depth at-risk basis computations, the significance of material participation under IRS rules, and practical strategies for limiting losses in individual taxation.
• Passive Activity Loss Limitations and Rental Real Estate Activities
  Discover how rental real estate activities are treated under passive activity loss limitations, including real estate professional exceptions, material participation rules, and the $25,000 offset.
• Utilization of Suspended Losses upon Disposition
  Learn how suspended passive losses are freed up upon the complete disposition of an activity, and discover strategies for optimal tax outcomes.
• Hobby Losses and Other Non-Deductible Items
  Explore critical insights into hobby loss rules, key distinguishing factors, and partial deductions to maintain accurate compliance under IRS guidelines.