Does Lacerte track accumulated losses of individual properties anywhere from Form 8825?

[Illni]

Does Lacerte track accumulated losses of individual properties anywhere from the Form 8825? Client with multiple properties reported on 8825 will be selling one property this year. Need to know what the losses were generated by each property instead of grand total. Is it tracked anywhere, or do I have to go back to all the old returns and enter them on a spreadsheet?

[abctax55 · Accepted solution]

"Form 8825 is in an S-Corp return".  

Actually it is also in a partnership return.

And both those entities pass out the losses to the shareholders/partners where the "suspended" issues come into play.

HAVE the properties been listed separately on the S - Corp return?

[Illni]

yes - they are listed as separate properties.

[George4Tacks]

Look at Screen 18 > Prior Year Unallowed Passive Losses

[Illni]

only works if on a Schedule E. Form 8825 is in an S-Corp return

[itonewbie]

What George means is to look at the 8582 for PAL suspended for each property since the limitation is determined on the individual's return.

[TaxMonkey]

Unclear why you are asking this.  Passive losses are not suspended at the S-corp level, and passive losses are suspended at the individual level as s-corp losses, selling a property in the corp will not free individual property losses on the individuals return, merely the gain from the sale will be passive income offset against the suspended losses.

So to answer your question directly - no Lacerte would not track the separate property losses - the are aggregated and reported to the shareholder on his K-1.

[Illni]

So am I to assume if there are $400,000 in aggregated suspended losses (of which approximately $150,000 is from the property sold) and there's a $100,000 gain on the sale, then $100,000 of the losses are released which essentially wipes out any taxable gain - the other $300,000 will be carried forward?  I thought I could allocate the losses that were created and suspended by that individual property. So in essence, all other suspended losses will not be released until the last property is disposed of and the S-Corp no longer exists?

[TaxMonkey]

That is correct, in order to free up all of the suspended losses from the s-corp, the s-corp must be disposed of in a fully taxable transaction.

[Illni]

Thank you so much -- I've heard people say you don't want to put multiple properties in an S-Corp but at least they pay no tax on the gains as they sell them if the disallowed losses are high enough -- it is just capped at the amount of the gain until the entity is disposed of.