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Good evening,
I have a potential client whose tax preparer moved out of state. They would like me to do their taxes but are concerned about a capital loss the prior preparer has been carrying over/drawing down from year to year. The loss occurred from the sale of an inherited home which was then sold at a loss. I've tried to do a draft return but when I try to enter the information about the property sale, the system says that it is in error because neither the acquired date or sale date is in 2022. Any advice on how I can assist this client going forward would be very much appreciated.
(There is still 11,845 in capital loss according to tax return filed in 2022).
Thank you, Community!
Dawn
Best Answer Click here
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Capital loss carryovers from inherited real estate is not unusual. For example, if the property sold for it's step-up value then the loss is generated by the deductible closing costs (typically commissions). To enter a prior loss carryover into ProSeries go to the Carryover Worksheet. Scroll down and you'll see LT and ST, Regular and AMT.
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@SensibleandHourly is the former accountant now a guest at an out-of-state federal facility? Yeah, you may want to get a copy of the old returns from the client.
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Oh, I'll be sure to get those. 😉
