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Passive Losses Subject to At-Risk Limitations

Level 1

Can an S-Corporation with passive losses which are subject to at-risk limitations, use these losses against another s-corporation's passive income? This would be on the individual return of course. Thank you in advance for your inputs!

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Level 13

No.  The order of limitations are (1) Basis, (2) At-Risk, then (3) Passive.

Because it is limited due to At-Risk limitations, it stops there.

Level 15

At risk rules apply first. If not at risk, there is no passive loss to be used against other passive income.

The not at risk loss carries over until shareholder is at risk.


ex-AllStar