Passive losses, standard deduction

[Aaron Smith]

Hi BPers,

Since the standard deduction is so high now at 24k for married couples, its looking like it makes more sense to do that than itemize. If I could deduct the full 25k in passive losses, that would be a different story, but I can't. 

My question is, if I take the standard deduction, will all of the passive losses from that year be suspended and carried over to the next year?

Thanks!

Aaron

[Ashish Acharya]

@Aaron Smith

I get this question a lot. 

What you need to understand is 

1) SD is related to the personal side of your tax return. Everyone gets it. One who had million in revenue, or million in loss. Does not matter where the income or loss is coming from. Yes if your itemized deduction is greater than 24k, take that. Both standard deduction or itemized deduction are related to personal side of tax return. 

2) passive losses are related to your business side of your tax return and has nothing to do with SD or ID.

SD and passive loss are not related.