Ordering rule
Paragraph (1) shall be applied for any taxable year—
(i)#
first, to the passive activity loss,
(ii)#
second, to the portion of the passive activity credit to which subparagraph (B) and 1 1 So in original. Probably should be “or”. (C) does not apply,
(iii)#
third, to the portion of such credit to which subparagraph (B) applies, and
(iv)#
then, to the portion of such credit to which subparagraph (C) applies.