Recapture of Scheduel E suspended loss

[Naveen Mohan from New York]

I have a client who could not claim schedule E rental losses because his income was over $150,000. Now he is selling the property. I was under the impression that he would be able to pick up all suspended losses. However I am not sure I am doing it right.

I went to my ATX Max and in fixed asset I clicked disposition tab and entered sale data and sale amount. Then I opened 4797 but the program is not picking up prior suspended losses from 8582.

How do I capture that suspended loss.

Thanks for your help.

Naveen Mohan

[cred65]

On the Sch E tab you have to check Item 11 "Complete disposition of a passive activity".