Is the unused loss carryforward on a foreign rental property allowed to be deducted on tax return the year it was sold?

[itonewbie · Accepted solution]

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.