J.K. Lasser's Your Income Tax 2017

Chapter 10 Loss Restrictions: Passive Activities and At-Risk Limits

1. 10.1 Rental Activities Generally Treated as Passive
2. 10.2 Rental Real Estate Loss Allowance of up to $25,000
3. 10.3 Real Estate Professionals
4. 10.4 Participation May Avoid Passive Loss Restrictions
5. 10.5 Classifying Business Activities as One or Several
6. 10.6 Material Participation Tests for Business
7. 10.7 Tax Credits of Passive Activities Limited
8. 10.8 Determining Passive or Nonpassive Income and Loss
9. 10.9 Passive Income Recharacterized as Nonpassive Income
10. 10.10 Working Interests in Oil and Gas Wells
11. 10.11 Partners and Members of LLCs and LLPs
12. 10.12 Form 8582 and Other Tax Forms
13. 10.13 Suspended Losses Allowed on Disposition of Your Interest
14. 10.14 Suspended Tax Credits
15. 10.15 Personal Service and Closely Held Corporations
16. 10.16 Sales of Property and of Passive Activity Interests
17. 10.17 At-Risk Limits
18. 10.18 What Is At Risk?
19. 10.19 Amounts Not At Risk
20. 10.20 At-Risk Investment in Several Activities
21. 10.21 Carryover of Disallowed Losses
22. 10.22 Recapture of Losses Where At Risk Is Less Than Zero

The passive activity laws were intended to discourage tax-shelter investments, but their reach goes beyond tax shelters to cover all real estate investors and persons who invest in businesses as “silent partners” or who are not involved full time in the business. The passive activity rules prevent an investor from deducting what the law defines as a passive loss from salary, self-employment income, interest, dividends, sales ...