[Verse 1] When your money's truly at-risk, section four-six-five will play No deductions past your basis, borrowed funds won't save the day Unless you're personally liable, guarantees that make you sweat Phantom losses disappear when your wallet's not under threat [Chorus] Three walls standing in your way Four-six-five, four-six-nine, four-six-one-L today At-risk limits what you claim Passive rules cage rental gains Excess business gets a ceiling Tax law's got you reeling [Verse 2] Material participation needs five hundred hours or more Seven tests can prove you're working, not just watching from the shore Rental income stays passive, real estate pros break the spell Fifteen hundred hours annually, their exception works quite well [Chorus] Three walls standing in your way Four-six-five, four-six-nine, four-six-one-L today At-risk limits what you claim Passive rules cage rental gains Excess business gets a ceiling Tax law's got you reeling [Verse 3] Two-eight-nine for single filers, five-seven-eight when married joint Excess business losses vanish past the indexed threshold point Net operating losses carry forward without end But only eighty percent coverage, taxable income they can't bend [Bridge] Nine factors test your hobby horse Profit motive is the source Three of five years showing gain Or the IRS brings pain [Chorus] Three walls standing in your way Four-six-five, four-six-nine, four-six-one-L today At-risk limits what you claim Passive rules cage rental gains Excess business gets a ceiling Tax law's got you reeling [Outro] When losses knock upon your door These three guardians patrol the floor TCJA changed the NOL game But the limits still remain
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