Ordering of PALs for QBI - Spidell

Ordering of PALs for QBI

Log in to Post

Message Board Ordering of PALs for QBI

This topic contains 1 reply, has 2 voices, and was last updated by Mike Giangrande 2 months, 2 weeks ago.

  • Author
  • #158071
    Aaron Gordon

    The taxpayer has suspended PALs from prior years as well as passive activities with net losses in the current year. He also has passive activities with net income in the current year.

    For purposes of QBI, prior years’ unallowed losses shall be used on a FIFO basis, but does that apply to the current year losses as well? Or are current year losses allowed before allowing the prior years’ unallowed losses (on a FIFO basis) for determining QBI?

  • #158319
    Mike Giangrande


    You would use current year losses to offset current year income before digging into losses disallowed in prior years.