Diane Posted February 18, 2009 Report Share Posted February 18, 2009 Client has earnings over $200,000, so cannot take rental losses. Question is: she's trying to sell the rental, but in the meantime is renting. If (or when) she sells, what do you do with the carryover rental losses? Diane Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 18, 2009 Report Share Posted February 18, 2009 It is carried forward until she can use them ore the property is sold. taxbilly Quote Link to comment Share on other sites More sharing options...
Diane Posted February 18, 2009 Author Report Share Posted February 18, 2009 I guess I'm not sure how to use the carryover losses in the year of sale. Are they calculated with the sale? put on the Sch E? although her income will still be over the limit. Diane Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted February 18, 2009 Report Share Posted February 18, 2009 If the client has only one rental property the entire passive loss carryforward if deductible in the year of sale. ATX takes care of this for you by marking the property as 100% disposed in the year of sale. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 18, 2009 Report Share Posted February 18, 2009 they become used upon sale. Quote Link to comment Share on other sites More sharing options...
Diane Posted February 18, 2009 Author Report Share Posted February 18, 2009 Thanks everyone. Diane Quote Link to comment Share on other sites More sharing options...
joelgilb Posted February 18, 2009 Report Share Posted February 18, 2009 Note, that the entire cfd loss should show up on the 1040 page one under the line for Sched E. Quote Link to comment Share on other sites More sharing options...
Tax Newbie Posted March 12, 2009 Report Share Posted March 12, 2009 I have the similar situation and I can not get ATX to work for me. My client's AGI for the year is more $150K. He has one rental property that he sold in 2008 with a loss of $2,000. I recorded the sales in the disposition of asset worksheet and the loss amount flow to form 4797 without any problem. However, schedule E does not allow him to claim the loss for current year rental activity loss. He has a rental activity loss of $4,000. I don't understand why ATX allow this loss on schedule E. Is this a flaw in ATX that I need to overwrite the loss amount on schedule E? Any help is greatly appreciated. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 12, 2009 Report Share Posted March 12, 2009 DID you mark complete dispositon on the e imput ? Quote Link to comment Share on other sites More sharing options...
Tax Newbie Posted March 12, 2009 Report Share Posted March 12, 2009 DID you mark complete dispositon on the e imput ? Thank you so much for your help, that did the trick. I thought complete disposition on the asset worksheet would do it. Now I understand that asset disposition is only for form 4797. Quote Link to comment Share on other sites More sharing options...
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