Four individuals formed Triangle Properties as a C corporation in 2008 The corporation is domiciled in North Carolina The corporation invested in commercial rental properties that generated passive activity losses The shareholders made a Subchapter S election for Triangle Properties effective on Ja...

While Code Section 469b provides that any loss or credit from an acti ...

Four individuals formed Triangle Properties as a C corporation in 2008. The corporation is domiciled in North

Question:

Four individuals formed Triangle Properties as a C in 2008. The is domiciled in North Carolina. The invested in commercial rental properties that generated passive-activity losses. The shareholders made a Subchapter S election for Triangle Properties effective on January 1, 2014. On the date of conversion, Triangle Properties had $ 118,000 of suspended passive-activity losses from its commercial rental properties. In 2014, the properties generated $ 44,000 of net rental income. Can Triangle Properties carry forward and deduct the suspended passive losses incurred when it was a C against the passive rental income earned while it was an S
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...