A loss on rental or business property can receive favorable ordinary loss treatment under Section 1231, but that does not always mean the entire loss is immediately deductible. Learn how annual netting, passive activity rules, basis and at risk limits, excess business loss rules, depreciation recapture, and the five year lookback affect the final tax result.

A recent Tax Court case shows why old tax records can remain important decades after a transaction. When a carryforward is used, taxpayers may need to prove where it originated, how it was calculated, and what remains. Learn what records should be preserved for capital losses, AMT credits, NOLs, passive losses, and other tax carryforwards.