Tax Limits and Sale
Tax Limits, Recapture, and Sale
Pages about passive activity losses, material participation, real estate professional status, short-term rental rules, recapture, exchanges, and entity-level issues.
Back to home · FAQ · Glossary · Decision checklist
A deduction only matters if you can use it, and a sale only ends well if you know what comes back. This hub covers both sides. On the usability side are the passive activity loss rules, the material participation tests, real estate professional status, the short-term rental exceptions, at-risk and excess business loss limits, suspended losses, and the role of entities.
On the sale side are depreciation recapture, unrecaptured Section 1250 gain, the net investment income tax, and the way like-kind exchanges can defer gain.
These are the pages that most often change a study decision from yes to no or from no to yes. Start with The Passive Activity Loss Rules and Cost Segregation for usability and Depreciation Recapture on Sale: What Comes Back for the exit. For invented-number illustrations, see Hypothetical: Passive Limits and Suspended Losses and Hypothetical: Sale and Recapture After a Study.
Return to the decision hub to bring the pieces together.