Treatment of former passive activity credit - Spidell

Treatment of former passive activity credit

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Message Board Treatment of former passive activity credit

This topic contains 0 replies, has 1 voice, and was last updated by Anonymous 1 week, 6 days ago.

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    Anonymous

    According to IRS publication 925, any prior year unallowed passive activity credits from a former passive activity can be offset the allocable part of current year tax liability.  I believe Ca is also conformed to Federal’s treatment of former passive activity rule. My question is where can I indicate the allocable part of current year tax liability that’s allocable to the current year net income from the “former” passive activity on  Form 3523, Seciton C?  Should I override on line 45 with explanation statement to FTB?   Thanks!