How to trigger a suspended rental loss carry-forward to 2018 that came from a partnership. Property sold in 2018. The 2018 return does not have a page 1 Schedule E ?

[dickwells]

The partnership is not final but the rental properties which had produced the suspended losses were disposed of which frees up the suspended losses.

[dickwells]

Normally you would just mark Box H indicating you had disposed of the rental unit.and that would trigger the susp loss that has been carried to tax year 2018. No Schedule E page one in this case and Partnership is not final.

[sjrcpa]

If they still own the partnership and have overall passive losses then nothing gets freed up.

[dickwells]

What I remember is if you dispose of the rental units the suspended loss is freed up. I may need to look further. The disposition of the two rentals has produced over 600K in gains. If I as an individual  had this same situation outside of the partnership the susp losses would be available. More thoughts or direction? I appreciate the feedback.

[sjrcpa]

What is the overall gain/loss on the K-1? Yes you are correct if you owned rentals individually and did not aggregate them. Have the partnership and the individual owner been treating each rental as a separate activity? Or has the individual been treating his interest in the partnership as one activity?

[dickwells]

Each rental activity has been separately accounted for as well as a farm activity that has been separately accounted for. If I had to file final on this partnership i could do so but do not plan on doing that. My issue with Proseries is I cannot say the magic word to spring the suspended loss. The overall gain is in the 500/600k range.
I have used this type of offset before but it was not in a partnership and I do not know what  box to check to spring the loss in this situation. RWWCPA

[sjrcpa · Accepted solution]

Income from partnerships goes on Sch E page 2.

[Marc-TaxMan]

you're doing a k-1 input?  there's a box for Final: with 3 choices.  that should open the suspended losses

[ekhosme]

How did you finally solve the problem?  I have the same issue.  Two rental properties in partnership reported on K-1 were sold.  There is one other activity in the Partnership.  I know how much suspended rental loss to release for each, just don't know how to release it.

[ekhosme]

Did you find a solution to your problem?  I have a similar situation, three rentals reported in a partnership, two each have their own 8825 worksheet, one is a K-1 from another partnership.  The two rentals each reported on their own 8825s have been sold.  I need to release losses for the two rentals on the 1040.  Tried to call tech support, but they can only advise technical matters.  This is one of those things where you need to understand the concept and the tax law.

Thanks for any help you can offer.