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Rental Property Sale

Jerry C
Level 3

My client sold a rental property (Actually Gifted so received $0.00 for property and assets) which they had a loss carry forward.

The overall Net loss carry forward is not showing up on the 1040 as a loss.

 

Not sure why? 

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5 Comments 5
Jerry C
Level 3

Added Information, the loss did show up on the State return but not the Federal Return???

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TaxGuyBill
Level 15

Passive losses are NOT released when giving the property as a Gift.

It should not show up on the tax return, and the carryover should be removed from the program (they increase the Basis of the property, so effectively they benefit the receiver, not the giver).

sjrcpa
Level 15

Don't forget the Gift Tax Return.

The more I know, the more I don't know.
abctax55
Level 15

The property had an NOL???? or do you mean a PAL?

** IRonMaN ** is FREE 🙂
Jerry C
Level 3

already done

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