1031-How to Input relinquished property carryover Loss

Forum|Forum|4 years ago
June 20, 2022
1 reply
4 views

I sold the first property with a 1031 exchange and sold another rental property with gain and this property is not in 1031 exchange, as per IRS reg. we need to carry over relinquished properties PAL loss to replacement property. But when I input 2nd property gain information it absorbed all the PAL from relinquished property loss as well.

Do you think I am doing the right approach

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

You can input the carryover loss on down down down the Sch E worksheet for the replacement property.

But passive losses will offset passive gains, so dont be surprised if the losses from one property offset the gains on another.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

MoineAuthor

Level 3

Hello Lisa,

Thank you for your input, sorry to bother your again,

Here is the fact, client sold the first property with a 1031 exchange and sold another rental property with gain and this property is not in 1031 exchange, as per IRS reg. we need to carry over relinquished properties PAL loss to replacement property. But when I input 2nd property gain information it absorbed all the PAL from relinquished property loss as well.

Do you think I am doing the right way, or just simple override the software.

Best

Moine

sjrcpa

Level 15

Passive losses, from whatever source, are allowed to the extent there is passive income. Look at the 8582, or mock one up if the software didn't generate one (because there is overall passive income)

The more I know the more I don’t know.

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