| |
:: Passive Activity Loss ATG - Exhibit 5.1: Dispositions
Exhibit 5.1:
Dispositions
IRC 469(g)
Computation
Net
gain/loss on
disposition of
property __________
Net
income/loss from
current year (+/-)
__________
Prior year suspended
losses
(+/-)
__________
Overall net
income/loss on
disposition __________
Decision
Tree
Overall
Gain: If
there is an overall
net gain, all
income, including
gain on sale of
property generally
goes on Form 8582,
as do the current
and suspended
losses. All income
and losses are also
reported on the
appropriate
schedules, typically
Schedule E and Form
4797. Losses are
fully deductible.
Overall
Loss: If
there is an overall
net loss, none of
the losses go on
Form 8582, but are
reported on the
appropriate
schedules,
if answer to all
the following is
yes:
-
Is there an
entire
disposition
of the
activity?
-
Is all gain
or loss
realized and
recognized?
-
Is sale or
other
disposition
to an
unrelated
party?
If
the answer to any of
the above is no,
income and losses
from the activity
are reflected on
Form 8582. Losses
are deductible only
to the extent of
passive income.
|
|
