Suspended Passive Losses: Where Contractor Deductions Get Stuck

Contractors: your rental property losses may be trapped. Many construction business owners invest in rental properties, commercial buildings, real estate partnerships, and investment property. But when those properties create tax losses, the IRS may not allow those losses to offset construction business income right away. These are called suspended passive losses. In this video, CPA George Ghazarian explains how contractors can unlock suspended passive losses, avoid major IRS traps, and plan real estate sales correctly. What You'll Learn What suspended passive losses are Why rental losses may not reduce your taxes immediately How selling a rental property can release trapped losses Why grouping rental properties matters Why selling to family can keep losses suspended Why gifting property can waste deductions How suspended losses may disappear at death How the 2026 excess business loss limits can delay deductions Why contractors should plan real estate sales before closing Who This Is For This is especially important for construction business owners, general contractors, builders, remodelers, subcontractors, and trades business owners who are using real estate to build wealth. A rental property sale, 1031 exchange, refinance, gift, or family transfer can create very different tax results depending on how it is structured. If you are a contractor with investment real estate, rental losses, passive activity losses, or a planned property sale, proactive tax planning can help reduce taxes, improve cash flow, and protect your wealth. Connect with Us • [email protected] • https://accountingsolutionsllp.com/ap... Contractor Tax Strategy Help We help construction business owners: • Reduce taxes legally • Improve cash flow • Structure real estate investments • Plan rental property sales • Use losses strategically • Build long-term wealth We only onboard a limited number of contractor clients each month because of capacity and hands-on service. Book your call here: https://accountingsolutionsllp.com/ap...