Passive Activity Loss Rule and Material Participation Test

At-Risk Rule video - https://youtu.be/Dx6VFYCoOCo

This video covers the Passive Activity Loss Rule that limits your ability to use passive losses to offset nonpassive income for tax purposes. The video also provides an overview of the Material Participation Test.

This rule commonly comes up in the context of real estate investing. Real estate investors frequently have net tax losses from their real estate investments. However, those losses cannot be used to offset nonpassive income if the Passive Activity Rule Applies.

Video Contents
00:00 - Intro
00:38 - What is the Passive Activity Rule?
03:31 - Example of When the Rule Applies
05:13 - Extra Hurdles for Real Estate Investing
06:13 - When Rule Applies Outside Real Estate Investing Context
07:29 - Material Participation Test



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Тэги:

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