Taxgirl Posted July 19, 2011 Report Share Posted July 19, 2011 I have a client that has several rental properties and he files a Schedule E. In 2010, he is disposed off two of these properties. Both properties had suspended losses from prior years. One property sold at a gain and one at a loss. Does he get to deduct the entire amount of the suspended losses even though they are greater than the $25,000 limit? He is not a real estate professional but actively participates in the business. I appreciate your time and help. Thank you. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted July 20, 2011 Report Share Posted July 20, 2011 The losses directly relating to the disposed of rentals are freed up completely. The gain and loss from the sales are netted with any other rental income/losses for the purpose of freeing up any losses from properties that aren't sold, which can be more than the 25,000 if the gain was big enough. That all works out on the 8582. Quote Link to comment Share on other sites More sharing options...
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