- Airplane Leasing
- Farm loss - particularly when the taxpayer lives out of state
- Rental Real Estate
- Real Estate Professionals demonstrating 'material participation'
- Equipment leasing losses
- 1120S and 1065 losses on the Schedule 'E' in the non-passive column
Remember Passive Losses are only deductible against Passive Income reported on IRS form 8582 line 1b or 3b
Example: Taxpayer personally owns a small business. Taxpayer also personally owns an industrial property that houses his small business. Taxpayers small business pays rent to tax payer for occupying the building. This rental income in this situation is not passive.
John R. Dundon, EA - 720-234-1177 - jddundon@comcast.net - http://prep.1040.com/jd/ - Defend Yourself Against the IRS - Enrolled with the United States Department of Treasury to Practice before the IRS - Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent - I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.