It's an ugly sounding word, but in my opinion it is used not to take rights or privileges away from the taxpayer, but rather to simplify the return and take what would have been two redundant returns (the individual's and the entity's) and combine them into one.

Sec. 1.179-4(e) explains the placed in service date as:“the time that property is first placed by the taxpayer in a condition or state of readiness and availability for a specifically assigned function, whether for use in a trade or business, for the production of income, in a tax-exempt activity, or in a personal activity.” 

Generally, suspended losses are allocated to each of the taxpayer's passive activities and are treated as passive activity deductions in future tax years, beginning with the immediately succeeding tax year [Reg. 1.469-1(f)(4)].Hope you see your valuable input here more often here Michael. 

It's past my bedtime so I won't attempt to run numbers but a few questions that come to mind are - where is the property located; can the taxable value increase thereby increasing what you have factored for annual tax payments?  

Thanks @Nathan Gesner, do you know if "Safe Harbor Election for Small Taxpayers" will apply in this situation where we can duct up to $10,000 for repairs/improvements in that tax year?

She's just taking advantage of what is possibly the greatest tax-payer-funded vote-buying program ever created.

I'm figuring a year end tax payment - we sold a rental property for a gain (held more than one year) and will have K-1 losses from two syndications that we are LP.  

However, under IRC § 1(h)(1)(D), real property that has experienced a gain after providing a taxpayer with a depreciation deduction is subject to a 25% tax rate--10% higher than the usual rate for a capital gain.

Certain self-charged interest income or deductions may be treated as passive activity gross income or passive activity deductions if the loan proceeds are used in a passive activity.Here is the IRS's position: To the extent that a taxpayer receives interest income with respect to a loan to a pass-through entity in which he has an ownership interest, such income should be allowed to offset the interest expense passed through to the taxpayer from the activity for the same taxable year" (H.R.

Of course the tax payers love the idea, their fiscal irresponsibility and lack of understanding knows no bounds.They tried asking citizens to pay for parking at the new garage next door and the response was outrage.....LOL!