So people ask I’m a high paid professional making over 200, $300,000 a year. How come I can’t get these passive losses or pals for short and offset my active W2 salary and pretty bad, but supposed to be calmed down. What’s the deal, man. Yeah. Yeah. Well, the, the most simple way to explain it is that you’ve W2 business, income, capital gains, stock sales, interest, dividend income, all of that income is considered non-passive.
So I go out and create a passive loss. I can’t let my passive losses against my non-passive losses. So my goal then should be to recharacterize my passive losses as non-passive.