https://ledgre.ai/landlord-tax....es-what-are-the-pass
Passive activity loss (PAL) limitations play a significant role in shaping the financial outcomes of real estate investments. These rules, outlined by the passive activity loss limitations are designed to restrict the amount of passive losses that taxpayers can use to offset active income. For real estate investors, understanding these limitations is crucial to accurately evaluating their investments' tax implications and overall profitability.


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