Hi All...
I have a client who sold a rental house at a big loss. From reading above, I got rid of my PAL adjustment, but now see that the loss is going straight to the 1040 as "Other gains and losses" on Line 14. I was thinking at least part of the (176,244) loss would wind up as NOL, since he paid no tax before the loss, and didn't need this loss on his 1040! Or at least, it would be a capital loss carryover! Comments? thanks