New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Why are suspended passive loss, section 179, and capital loss carryovers from last year not being limited by Form 6198?

Answer

Losses are limited by Form 6198 before Form 8582. Investment interest is limited by Form 4952 before Form 6198. Section 179 is limited by trade or business income after Form 8582. Capital losses are limited to $3,000 after Form 8582. Only losses disallowed by the at-risk limitations are subject to the at-risk limitation in subsequent years. Passive losses suspended by Form 8582, section 179 disallowed by Form 4562, and capital losses disallowed under $3,000 limitation have already passed the at-risk limitation in previous years and, when allowed by Form 8582, Form 4562, or Schedule D, are losses allowed in addition to those allowed by Form 6198.

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