Enrolled Agent Exam [Part 2] 99, Passive Activity Loss Rules — §469

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The general rule that passive activity losses can only be deducted against passive activity income. - How the special $25,000 allowance for rental real estate lets taxpayers with active participation deduct losses against non-passive income. - The calculation for the MAGI phase-out of the $25,000 allowance, which occurs between $100,000 and $150,000. - That all suspended passive losses from an activity are released and become fully deductible upon a complete and taxable disposition of that activity. - The key differences between the 'active participation' standard for the rental allowance and the more stringent 'material participation' tests. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep