What would happen to suspended losses in a divorce situation? Would half of the losses go with each party for future years?
Also, what happens if you accumulate $60,000 over the years in suspended losses and you reach a year when your income was low enough to use the losses - are you able to use 25K one year and still maintain the additional 35K for future years?
I would think you would need to make it part of your divorce decree - who gets the carryforwards. Check with your divorce attorney.
In answer to your other question, the losses are suspended, until you have passive income to absorb the carryover losses or if you sell the property the losses are "freed up" and can be taken in the year of sale.
what happens if you accumulate $60,000 over the years in suspended losses and you reach a year when your income was low enough to use the losses - are you able to use 25K one year and still maintain the additional 35K for future years?
The short answer is yes.