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My question is regarding passive activity losses for rental…

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Hello,My question is regarding passive...
Hello,My question is regarding passive activity losses for rental property.I disposed of my rental property through the 1031 Exchange and received a boot, since the replacement property cost less than the sale of the relinquished property.I also had passive activity losses for the relinquished property, carried over from previous year.How do I offset the boot by these PAL on the tax return (which tax forms and on what lines)?Thank you.
Submitted: 4 months ago.Category: Capital Gains and Losses
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Answered in 13 hours by:
3/30/2018
Tax Expert: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 4 months ago
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Capital Gains and Losses
Satisfied Customers: 1,435
Experience: Former IRS Revenue Agent
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I'm Fiona, former IRS revenue agent. I am looking at your question and will get back to you soon. Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP,IMTA

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Tax Expert: Dr. Fiona Chen, Certified Public Accountant (CPA) replied 4 months ago

Dear Customer,

1) Please provide the list of all your passive losses and gains of all dates and all properties.

2) Please provide how you get passive loss on the rental property when you sell it with a boot. In the end year of the rental property, the loss should have been taken fully.

3) Also, did you recognize depreciation recapture when you calculate your adjusted basis of the relinquished real property of the exchange? Please show calculation.

Thank you.

Regards,

Fiona

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