Passive Activity Grouping Calculator
Evaluate grouping passive activities to maximize loss utilization.
Activities (4)
Activity Summary
Rental:2
Business:1
Investment:1
Total Hours:830
Rental Income:$ 10000
Business Income:$ 30000
Investment:$ 8000
REPS Status
REPS:No
750+ Hours:Yes
Passive Loss Analysis
Total Losses:$ 5000
Usable:$ 5000
Suspended:$ 0
Material Participation
Activities >500 hrs:1
Non-Passive Income:$ 30000
Recommendation
Multiple rental activities with net income. Grouping not beneficial this year - losses already offset by rental income.
Grouping Rules
- File grouping election with return
- Irrevocable once made
- Can group similar activities
- Rental with rental allowed
- Business with business allowed
- Rental with business NOT allowed (unless REPS)
- Hours count together for grouped activities
- Grouping affects material participation test
- REPS can group rental with business
- Form 8582 for passive activity losses