How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Sold a low income 1250 property and need to recapture the

Customer Question

sold a low income 1250 property and need to recapture the depreciation which is $1,300,000, whereas our accumulated losses at the partner's level is $ 850,000 meaning there's 450,000 more in income than the partner's were allowed as a deduction over the 27 years of ownership. Can I show the 850,000 as the recapture amount on form 4797, instead of the 1,300,000 ?
Bob Hall
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Hi Bob and welcome to our site!
The partner would need to report the full amount of depreciation recapture and

separately will deduct previously disallowed losses on schedule E.
As your dispose the entire passive activity - there will not be any passive loss limitation for all previously disallowed losses.

Related Tax Questions