ILLMAS Posted March 21, 2018 Report Share Posted March 21, 2018 My brain is toast for the night, I have a client that sold their rental unit in 2016 at a loss of $40k (short sale, 1099-C possibly in the near future), in 2016 they were only able to deduct about $20k of the loss, in 2017 the carryover amount is limited to $18k. My question, is the loss allowable if they didn’t have any passive income? Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 21, 2018 Report Share Posted March 21, 2018 It's my understanding (and I could be 100% wrong) is that 1231 losses must be offset against 1231 gains only. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 21, 2018 Report Share Posted March 21, 2018 16 hours ago, ILLMAS said: My brain is toast for the night, I have a client that sold their rental unit in 2016 at a loss of $40k (short sale, 1099-C possibly in the near future), in 2016 they were only able to deduct about $20k of the loss, in 2017 the carryover amount is limited to $18k. My question, is the loss allowable if they didn’t have any passive income? Yes, it becomes active on disposition. Was it carried over as an NOL? 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.