She must use the proceeds of the sale to purchase new real estate.If she moved from that house in the last three years it is possible she could have some tax relief as part of the exclusion of sec 121 but I'm sure the accountant looked at the dates and calculated that she had been gone for too long.She absolutely could have done a 1031 exchange to purchase new rental property and continued to defer the tax until death.  

@Tait DuryeaIt's not really a loophole....A loophole is an unintended tax benefit created by oversight or omission.The RE professional treatment regarding passive losses is an intended, explicitly codified benefit designed to provide relief from the passive activity loss rules to those that are genuinely involved in real estate as a trade or business.Regarding documentation. 

I gotta co-sign with Jeff B. on this as far as the enclosed link showed there is no benefit to the consumer, REIs not even small banks, only the trillion dollar financial institutes will breathe a sigh of relief via the CHOICE Act.

It can also be abused by the DIY crowd who've provided comic/tragic relief for generations.The opposite extremes in this debate are 1) Never buy real estate using debt. 2) Buy all your real estate with none of your own money.

Sigh of relief.

The large apartment complex where I live has a Military Personal Release clause (per the Servicemembers Civil Relief Act) that allows for early termination of a lease.

And the thought was I would deal with that later.This laundry room is in the basement and the carpet and total space that had to have water restoration twice was all in the basement.I'm pretty sure the tenant glued the screws in place and eventually I had my contractor drill the screws out after the tenant had vacated.After the second back up I was very suspicious, of course, and after he had moved out I spent $108 again to have the rooter man destroy the grate and go in the relief hole that joins the main drain line behind the trap with a smaller rooter and vibrate the heck out of whatever he gets his rooter in behind.

One benefit debtors will notice is relief in their total expenses and their debt becomes a little more manageable.

Money talks and creates options and although the dollar continues to devaluate, so does other currencies.Since I am not a militant, I can not do what I wish would be done - that is, a revolution and overthrough our corrupt government.Our country was formed on the basis of freedom and relief from over taxation.

It was such a relief.