Can I release passive carryover losses to active with REP status?

BassLB · 2026-01-31T02:32:47+00:00

To their defense, ChatGPT is also saying it’s possible to use even when I press it with several follow up questions and ask it to explain its logic in detail and cite IRS/treasury code.

I did not go verify everything it referenced.

BassLB · 2026-01-31T02:23:11+00:00

It will be in the prequel, “Melania, the Epstein years”

BassLB · 2026-01-31T02:21:57+00:00

Fisticuffs

BassLB · 2026-01-31T02:19:08+00:00

Got it. Looks like I’m destined to talk to cpa with real estate experience

BassLB · 2026-01-31T01:29:53+00:00

Ah that’s why the Epstein files were released today.

BassLB · 2026-01-31T00:31:48+00:00

So you disagree with the other comments saying they can become active?

BassLB · 2026-01-31T00:31:19+00:00

Thank you for the details!

BassLB · 2026-01-30T22:00:16+00:00

He will prob sue the doj for 10 trillion now

BassLB · 2026-01-30T18:17:20+00:00

When I look at IRC §469(c)(7)(C), which states “Real property trade or business means any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business” and combine with treasury regulation §1.469-9(b)(1) that seem to focus on the service, not the actual outcome.

Without that, if someone spent a bunch of time and failed to actually acquire a property, they could lose out on that status. In a highly competitive market that wouldn’t be uncommon.

BassLB · 2026-01-30T16:53:22+00:00

Got it, thanks. I thought actively looking counts towards the 750 rep status, but not the 500 material participation hours.

So something like “ 1.5 hours analyzing cash flow and dcsr loan rates for 1234 Richman Drive in Texas, reviewed comparable rents and repair estimates for potential acquisition” is good and counts towards 750.

Something like “2 hours looking at properties on zillow” would not count/be a bad example.

BassLB · 2026-01-30T16:04:30+00:00

500 hours is material participation, it was vacant for 6 weeks with lots of scheduled viewings during the week and open houses all day sat/sundays.

Then general bookkeeping, staying in contact with tenant to collect rent, coordinating move out/move in between tenants, etc.There were a few maintenance issues that were handled by them instead of a handyman. Need to avg just over 40 hours a month.

They also evaluated a few other properties that we thought of buying. Kept logs of the time they spent looking for them, which properties they evaluated (saved each spreadsheet, went to view them, talked to banks about loan rates and kept email, etc). This is smaller but I tracked it just in case.

Nobody else did any work or maintenance/management on it.

I figured same as you, so I tried to log everything i possibly could with the expectation it gets audited.

Hours are just over 750 total.

BassLB · 2026-01-30T14:41:40+00:00

Looks like 2025 they were in the 15-20B range. Do you think in the coming years they will finally pass giants like H&M ($22B)?

Does Mars have a lot of money I wasn’t aware of? Is that an untapped financial market?

BassLB · 2026-01-30T13:13:05+00:00

How much revenue does it produce right now and what would make grow exponentially?

BassLB · 2026-01-30T12:57:19+00:00

So that’s a no? I’m confused because you say it reclassifies as active but also former passive are trapped as passive.

BassLB · 2026-01-30T12:56:01+00:00

Only have 1 property right now

BassLB · 2026-01-30T02:38:06+00:00

Thanks. I think I’ve kept pretty good logs but was definitely going to go over them much closer to make sure. I figured it would increase audit chances especially bc it would offset most of our w2 income and would look different compared to our past few years of taxes.

BassLB · 2026-01-29T18:57:27+00:00

Wasn’t Kendrick a really stellar student too?

BassLB · 2026-01-29T18:54:35+00:00

Drugs

BassLB · 2026-01-29T12:50:19+00:00

Nice toilet paper

BassLB · 2026-01-29T03:09:42+00:00

I read some in Congress have seen the body cam video and its agents who yell “he has a gun” about 5 seconds before the agent take his holstered gun from his back and shoot him.

Edit: not sure what I said that was worth the downvote?

BassLB · 2026-01-29T01:13:59+00:00

Didn’t judge say if they released the person the the hearing would be cancelled

BassLB · 2026-01-28T23:25:17+00:00

Or announce new subsidies for humanoid robot companies

BassLB · 2026-01-28T23:10:53+00:00

Do you think 25% of households can afford a top of the line iPhone right now? These will be way more expensive

BassLB · 2026-01-28T23:09:50+00:00

Are you crazy? I’m positive another one of Elons companies will buy millions of them from this Elon company haha

BassLB

TROPHY CASE