taxdan Posted February 19, 2013 Report Share Posted February 19, 2013 I would just like to make sure I'm doing this correctly as it generates quite a huge loss for the client. They purchased a prin residence in Oct 2008 for $825K. They moved and converted the property to a rental in March 2011. At this time the FMV was $751K. The home was sold in May 2012 for $646K. All values were broken down between land and building for depreciation purposes and there were some PAL carried forward to 2012. Since this is a complete dispostion of a passive activity, they have a rather large deductible loss...no NOL as they have enough wage income to offset. I used FMV at time of converting the property to rental plus the usual expenses of sale as the basis...less depreciation of course. Does this sound correct? I'm not sure if I did this right since it was first a prin residence. Thanks so much for the input! Dan 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.