SUSPENDED LOSS OF DISPOSED PROPERTY

[Theresa59]

My property has prior year unallowed losses for rental real estate which I have input as described.  However, after disposition, form 8582 still shows a suspended loss.

It should be zero as a carryforward suspended loss and taken in current year.

How do I correct?

[TaxGuyBill · Accepted solution]

On the Schedule E worksheet, check box "H" to indicate that it was sold in a fully taxable transaction.  That will release the passive losses.