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Updated over 1 year ago,
Claiming prior passive losses now that we have reached REPS status
We had a 50K passive loss in 2021. In 2022 we acquired more properties and my husband now qualifies as a real estate professional. We are above the income limits to claim the loss but I thought we could count that carry forward loss from 2021 against our active income from 2022 now that the business is considered active. Is that not true? Is that old loss still considered passive and only counts against future passive income?