cred65 Posted February 18, 2016 Report Share Posted February 18, 2016 The property was vacant and no attempt was made to rent during 2015. There are ongoing expenses; Mortgage interest, RE taxes, Depreciation, repairs. What is the proper way in ATX to defer loss? Checking box 13 "to calculate at risk limitations" works and send the loss to Form 6198. Any other suggestions? Taxpayers AGI app. $106K. TIA Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 19, 2016 Report Share Posted February 19, 2016 These carrying charges should be capitalized as carrying charges on the unproductive real estate. To be capitalized as carrying charges, the expenses would have to be those that could be deducted if the property had been rented. See "carrying charges" in chapter 7 of pub 535 for how to make the election each year and the specific wording. 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 19, 2016 Report Share Posted February 19, 2016 Take Judy's advice here. Totally agree with her. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 20, 2016 Report Share Posted February 20, 2016 Yes, Judy has it right. Quote Link to comment Share on other sites More sharing options...
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