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