tax1111 Posted April 5, 2022 Report Posted April 5, 2022 TP owned and lived in the property for more than 2 years out of 5 year before the house was sold in 2021. But they also rented the property for the time they no longer lived there. I used the 121 exclusion but how to deal with the disposal of rental property at the same time? Will the suspended passive loss be released in this case or it is lost. Thansk. Quote
Pacun Posted April 5, 2022 Report Posted April 5, 2022 Before I make my opinion, I would like to know why did they have suspended passive loss? Depending on the situation maybe carrying the loss was a mistake. On the last day of the rent, I stop taking depreciation on the asset by transferring to personal use. Knowing when it house was rented and when it was used by the owner is important because you could have non-qualified use period. Quote
joanmcq Posted April 6, 2022 Report Posted April 6, 2022 When you indicate that the asset is disposed of in fixed assets, there is a box to check if it was also a personal residence. Then it goes to the personal residence sheet on the 8949. I’m sorry I can’t give more help than this, I’ve had a rotten day. 2 Quote
jasdlm Posted April 6, 2022 Report Posted April 6, 2022 42 minutes ago, joanmcq said: When you indicate that the asset is disposed of in fixed assets, there is a box to check if it was also a personal residence. Then it goes to the personal residence sheet on the 8949. I’m sorry I can’t give more help than this, I’ve had a rotten day. I'm really sorry about the rotten day. That stinks. Quote
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