If I have 3 rentals on Schedule E and sell one for a capital gain that exceeds the suspended losses on all three, can I use the suspended losses of all three?

tomfattor · ‎12-07-2019

This question relates to the phrase "complete disposition of an activity".Three rental properties are listed on Schedule E and reported separately. Property A has a suspended loss (SP) of $20K, Property B's is $10K and Property C's is $10K. Property A is sold, resulting in a $200K gain. Can SPs for all 3 properties be used ($60K), or only the $20K, or none?

Just-Lisa-Now- · ‎12-07-2019

What happens when you check box H near the top of the Sch E worksheet of the one that sold?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

taxiowa · ‎12-07-2019

All 3 suspended passive losses would be released if you sold Property A for a passive gain. In this case the gain releases the losses not the fact the property was sold. But you should check box H anyway.

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