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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I had an AGI loss last year of $934,604. I thought this

Customer Question

I had an AGI loss last year of $934,604. I thought this would be an NOL. It was caused by Sec 1231 losses of 592,691 and net rental losses of $361,405. Why does this not carry over to 2015 - or does it?
JA: Thanks. Can you give me any more details about your issue?
Customer: It was 17 condo units which I finally sold and kept just 1 unit. The rest were sold to the buyer. He took care of unpaid property taxes and water bills. I received no cash at the closing in 2014 but I was free and clear of this debt.
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 8 months ago.
Category: Tax
Expert:  Jonathan Tierney replied 8 months ago.

Hi, my name is ***** ***** I can help. Rental losses are often limited to other passive income and therefore are usually suspended (not allowed to be deducted) until the passive activity is sold (basically when the rental property is disposed of). IRC 1231 losses are treated as would be treated as an ordinary loss on Form 1040 and could create an NOL.

Expert:  Jonathan Tierney replied 8 months ago.

I can't really provide you with an answer for sure without looking at your return. As an additional service I can review your 2014 return. If you accept you can upload a redacted copy (personal information blacked out or removed) to a Dropbox folder so others on this site will not have access to it.