ETax847 Posted May 20, 2016 Report Share Posted May 20, 2016 Client has a rental condo, that he is selling at a gain. He has suspended rental losses due to making too much money. Can someone please explain how the suspended losses come into play when he sells the condo? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 20, 2016 Report Share Posted May 20, 2016 http://www.thetaxadviser.com/issues/2008/may/disposingofanactivitytoreleasesuspendedpassivelosses.html Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 20, 2016 Report Share Posted May 20, 2016 The suspended losses are released at the disposition of the asset. ATX handles this really well. Just proceed with the disposition as normal and it will flow through to the 1040 properly. Tom Newark, CA 3 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted May 20, 2016 Report Share Posted May 20, 2016 Check the box on Sch E for final disposition. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted May 23, 2016 Report Share Posted May 23, 2016 had this situation a couple years ago. yes- ATX handles well. Remember - the losses may still be suspended for a while, depending on income. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted May 31, 2016 Report Share Posted May 31, 2016 the suspended losses will show up on schedule E so you get the benefit at ordinary rates. Depending on when the condo was put in service [more info needed] the amount claimed as depreciation will be unrecaptured capital gain taxed at 25%. Quote Link to comment Share on other sites More sharing options...
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