Grouping rental activities can make material participation easier to establish, but it can also delay the release of suspended passive losses when one property is sold. Learn the difference between general activity grouping and the real estate professional election to combine rental real estate interests.

Real estate professional status can allow rental real estate losses to become nonpassive, but the rules require more than simply working 750 hours in real estate. Learn how the 750 hour and more than 50 percent tests work, how spouse hours and material participation are treated, when rental properties can be combined, and what the Tax Court decision in Mirch v. Commissioner teaches about documenting participation.

Suspended passive rental losses can remain unused for years, but they generally do not expire. Learn four ways real estate investors may be able to use these losses, including passive income, the special rental allowance, former passive activity income, and a qualifying taxable disposition.