Cropredy CPA
Level 1

If a rental property has disallowed losses and is sold to a related party, go to the Schedule E Worksheet for the sold rental property and scroll down to the section called Carryovers to 2021 Smart Worksheet and change Line G - Schedule E suspended loss to 0.

This will keep Schedule E from giving the suspended losses when it shouldn't due to the sale to a related party.

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