sale of rental property

[imjulier]

Hi-

Have client who sold rental property for which the losses have not been able to pass through to the 1040 because income exceeds $150K for several years. Losses have been accumulating on the 8582. Since the property is sold, isn't it correct to pass through all unallowed losses from previous years? If so, how do I acheive this in ATX?

Thanks,

Julie

[Maribeth]

Hi-

Have client who sold rental property for which the losses have not been able to pass through to the 1040 because income exceeds $150K for several years. Losses have been accumulating on the 8582. Since the property is sold, isn't it correct to pass through all unallowed losses from previous years? If so, how do I acheive this in ATX?

Thanks,

Julie

Yes, the losses are released. There is an option at the top of the input screen to indicate that the asset was disposed of during the year. If you check that, the losses should flow through to the Schedule E.

Maribeth