Friends:

In 2024 Client incurred $25,000 in expenses for a rental property but had zero rental income, creating an unallowed income loss of $25,000.  Unfortunately, she sold the property in 2024, so there is no future income against which to apply the unallowed income loss.  I understand that there are ways that unallowed losses can be used.  Can anyone help me understand those possibilities?

For what its worth, she had a $40,000 capital gain on the sale (though she had to bring money to the table because she had taken out equity).

Thanks.

Micah