Sale Rental R/E by R/E Professional

[jlewis]

Have real estate professional with 2 rental properties for several years, elected in 2011 to treat all as single unit & sold one in 2013 for nice gain. Both had rental loss in 2013. ATX treats gain as it should and only allows rental loss on remaining unit.

I understand that should be correct way, since disallowed rental loss on unit sold won't be allowed until remaining unit sold.

Question-doesn't seem to be a form or schedule that would carry forward the info from 2013 until remaining unit sold sometime down the road to allow loss, and how would it be reported then?

If anyone has encountered similar situation in the past or know mechanics of how/if info would carry forward and be reported later, please share your knowledge.

Thanks for any replies.

[jlewis]

Further reading seems to indicate that aggregating rentals would not free up previously suspended losses since a sale of one is not a disposition of "entire activity". Unable to find citation if no suspended losses involved then why current year rental loss on unit sold at gain is not allowed with ATX. ATX allows rental loss on unit kept due to R/E professional with aggregation election.

Any thoughts appreciated.

[Pacun]

I asked this question and someone mentioned that notes to the file are forwarded for ever. So if you make a note this year, you will have 10 years later... well provided everything is smoothly and you don't change tax software.

[joanmcq]

Since both units weren't sold and the client elected to treat as one, not checking the complete disposition box should make ATX carry all the losses forward.