When you sell a passive investment, such a rental property, this RELEASES the passive losses.
Therefore you may deduct the FULL amount of the forwarded losses in the year of sale.
If you are carrying information in from last year's TurboTax, you will need to go to the asset worksheet and indicate that you have sold the property.
Note that this cannot be done very well using TurboTax Online. You definitely should be using either PC or Mac installed version!
Done, turbo tax figures I owe not fed or state income taxes this year.
OK. Then is this resolved and you are just verifying it is accurate?
Turbotax allows me to indicate sale of property.
does this make sense to you ?
no 2012 taxes I mean
It is possible. I don't know what else is on your return.
This type of loss can offset ordinary income unlike a capital loss
just ordinary income
no capital gains or interest income
When you sold the property, you had two types of losses. Part was the ordinary loss of the carried forward passive losses, the other, the capital loss on sale can only offset up to $3K of ordinary income per year
Carried-forward losses are ordinary
yep only taking 3k in past years
this is very sweet although the last 10 years of losses has been difficult
RIght. These losses would have gone against ordinary income in past years, but the rules don't allow it based on your high income
exactly thank you so much, !!!!!!!!!!!!
Smile as your refund is dropped into your account. :)