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AMT eats up suspended passive losses?
After a 1031 exchange, my replacement properties are now generating taxable income. These gains are offset in regular taxes by passive loss carry forwards, and not taxed until I run out of these carry forwards (I believe). But this new income is fully taxed under AMT.
This makes it seem like the past losses have no value whatsoever. The past losses will continue to decrease in regular tax until they get to zero, but I'm paying AMT taxes on every penny of them.
Do I have this wrong? Is there any way to capture value for the past losses in this scenario?