TaxGuyBill
Level 15
10-08-2022
10:04 AM
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1031 Exchange and related party. Both of those would disallow the passive losses to be released.
However, I think the actual problem is how to tell the program that the "boot" is passive, so the passive losses would offset that. I suspect that the program can't do that, and therefore you may need to manually do that (manually enter the deduction on Schedule E and manually reduce the passive loss carryover).