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Four ways to turn passive losses into deductions

January 1, 2014

Selling your rental property? If the answer is “yes,” I’ve good news for you.

The IRS will now allow you to deduct all those losses you couldn’t deduct in past years.

Uncle Sam calls those past, denied losses, “suspended losses.” And to make sure that you can now claim all your formerly suspended tax deductions, you need to avoid the hidden traps the IRS has set for you.

I’ll provide you with four tactics you can use to side-step IRS traps when you read my new article titled Tax Tips: 4 Tactics That Turn Suspended Passive Losses into Tax Deductions.

Four money-saving tactics you can use now:

Tactic #1: Learn how to deal with the “entire interest” rule. The “entire interest” rule refers to how you group properties for passive-loss purposes. If you don’t know how to handle the rule correctly you can get in big trouble, fast. We’ll show you how to be a winner when you read the full article.

Tactic #2: Be careful about selling to relatives. Sorry, but your family can’t help you avoid the passive-loss trap. If you sell your rental property or rental-property group to a related person, your suspended losses remain suspended. Ouch! We’ll give you all the details when you read the full article.

Tactic #3: Sometimes it pays NOT to be charitable. The fact is, if you give away your property, you also give away your suspended losses. Not good. You’ll get the whole story when you read the full article.

Tactic #4: Try hard to stay alive! The sad fact is, when you die, the IRS releases your passive losses… but only those suspended losses that exceed the basis step-up in your property. We’ll explain this in simple language when you read the full article.

Filed Under: Featured Articles, Losses, Passive income and losses, Rental Properties, Tax Planning

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