TXX5768

. What happens to losses disallowed by the passive activity loss rules?

2. What happens to those losses when the passive activity is sold or otherwise disposed of?

3. Are the limits on passive losses a permanent denial of a loss deduction or a deferral of the loss eduction?Explain.

4.What are and explain ALL the requirements for an individual to deduct up to $25000 of passive losses against non-passive income? Explain the "phase-out" of this tax benefit.

5. What types of trades or businesses are "real property trades or businesses" under IRC469(c)7, and why is this important?

6. Why is it important for the taxpayer to determine what constitutes an "activity?" What are the limitations on the grouping of activities?

7. List and explain when the passive activity loss rules are applied at the entity level, and when they are applied at the owner level.