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Level 2
December 7, 2019
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Is the unused loss carryforward on a foreign rental property allowed to be deducted on tax return the year it was sold?

  • December 7, 2019
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Best answer by itonewbie

The same rules for limiting/releasing losses apply, whether the loss arises from a foreign or domestic rental activity or a subsequent sale of that property.

You should also consider outstanding SLL/OFL that may have been created by losses from the foreign rental as those are subject to recapture for FTC purposes.

1 reply

itonewbie
itonewbieAnswer
Level 15
December 7, 2019

The same rules for limiting/releasing losses apply, whether the loss arises from a foreign or domestic rental activity or a subsequent sale of that property.

You should also consider outstanding SLL/OFL that may have been created by losses from the foreign rental as those are subject to recapture for FTC purposes.

---------------------------------------------------------------------------------Still an AllStar