Rental Loss Carryovers

[Diane]

Client has earnings over $200,000, so cannot take rental losses. Question is: she's trying to sell the rental, but in the meantime is renting. If (or when) she sells, what do you do with the carryover rental losses?

Diane

[TAXBILLY]

It is carried forward until she can use them ore the property is sold.

taxbilly

[Diane]

I guess I'm not sure how to use the carryover losses in the year of sale. Are they calculated with the sale? put on the Sch E? although her income will still be over the limit.

Diane

[RoyDaleOne]

If the client has only one rental property the entire passive loss carryforward if deductible in the year of sale.

ATX takes care of this for you by marking the property as 100% disposed in the year of sale.

[michaelmars]

they become used upon sale.

[Diane]

Thanks everyone.

Diane

[joelgilb]

Note, that the entire cfd loss should show up on the 1040 page one under the line for Sched E.

[Tax Newbie]

I have the similar situation and I can not get ATX to work for me. My client's AGI for the year is more $150K. He has one rental property that he sold in 2008 with a loss of $2,000. I recorded the sales in the disposition of asset worksheet and the loss amount flow to form 4797 without any problem. However, schedule E does not allow him to claim the loss for current year rental activity loss. He has a rental activity loss of $4,000. I don't understand why ATX allow this loss on schedule E. Is this a flaw in ATX that I need to overwrite the loss amount on schedule E? Any help is greatly appreciated.

[michaelmars]

DID you mark complete dispositon on the e imput ?

[Tax Newbie]

DID you mark complete dispositon on the e imput ?

Thank you so much for your help, that did the trick. I thought complete disposition on the asset worksheet would do it. Now I understand that asset disposition is only for form 4797.