Discussion:Rental losses from S-Corp

or was it Discussion:Unbelievable Yikes! S Corp Rental Real Estate (skip the last 2/3rds unless you like arguments for the sake of arguments)

although Wes think's otherwise in this example Discussion:Passive Loss from a S Corp

I'll throw this in for fun Discussion:Passive Activities - 2nd tier is S Corp

Discussion:S-Corp/LLC Net Income against real estate loss?

Internal Revenue Code:Sec. 469. Passive activity losses and credits limited

is each rental a separate activity for the taxpayer

or

is the entire S corp one activity? That is, does the running of multiple rentals through an S corp effectively aggregate them for purposes of the passive activity loss rules?

"Partners and S corporation shareholders may also claim a current deduction for suspended passive activity losses when they dispose of their entire interest in the partnerhip or the corporation, OR WHEN THE PARTNERSHIP OR CORPORATION DISPOSES OF ALL OF THE PROPERTY USED IN THE PASSIVE ACTIVITY."

Partnerships and S Corporations
If an entity contains more than one business or rental activity, it must group or separate activities. Once the entity groups its activities, the investor may group those activities with each other, with activities he conducts himself or with activities conducted through other entities – as long as the grouped businesses form an economic unit, i.e. they are integrated interrelated activities. See Reg. § 1.469-4(d)(5).

(ii) Cross reference. An activity that a taxpayer conducts through a C corporation subject to section 469 may be grouped with another activity of the taxpayer, but only for purposes of determining whether the taxpayer materially or significantly participates in the other activity. See §1.469–2T(c)(3)(i)(A) and (c)(4)(i) for the rules regarding dividends on C corporation stock and compensation paid for personal services.