Normally you would just mark Box H indicating you had disposed of the rental unit.and that would trigger the susp loss that has been carried to tax year 2018. No Schedule E page one in this case and Partnership is not final.

sjrcpa

Level 15

If they still own the partnership and have overall passive losses then nothing gets freed up.

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

D

dickwellsAuthor

Level 2

What I remember is if you dispose of the rental units the suspended loss is freed up. I may need to look further. The disposition of the two rentals has produced over 600K in gains. If I as an individual had this same situation outside of the partnership the susp losses would be available. More thoughts or direction? I appreciate the feedback.

sjrcpa

Level 15

What is the overall gain/loss on the K-1? Yes you are correct if you owned rentals individually and did not aggregate them. Have the partnership and the individual owner been treating each rental as a separate activity? Or has the individual been treating his interest in the partnership as one activity?

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

sjrcpaAnswer

Level 15

Income from partnerships goes on Sch E page 2.

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

D

dickwellsAuthor

Level 2

Each rental activity has been separately accounted for as well as a farm activity that has been separately accounted for. If I had to file final on this partnership i could do so but do not plan on doing that. My issue with Proseries is I cannot say the magic word to spring the suspended loss. The overall gain is in the 500/600k range.
I have used this type of offset before but it was not in a partnership and I do not know what box to check to spring the loss in this situation. RWWCPA

E

ekhosme

Level 3

How did you finally solve the problem? I have the same issue. Two rental properties in partnership reported on K-1 were sold. There is one other activity in the Partnership. I know how much suspended rental loss to release for each, just don't know how to release it.

M

Marc-TaxMan

Level 7

you're doing a k-1 input? there's a box for Final: with 3 choices. that should open the suspended losses

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