Dear Experts:
I would like to follow up with a revised question.
In this example:
1. Jack has disallowed carryforward K-1 passive losses from prior years and K-1 passive losses from 2022. These were passive losses from limited (S corporation) partnerships (investments A and B). Investments A and B were not sold in 2022.
2. Jack sold a rental property C (he was not a real estate professional) in 2022. He had some rental income losses in 2022. He also had disallowed carryforward passive rental income losses from the prior years. Jack sold the rental property with a net gain of 100k (taking into consideration of sale price, adjusted cost basis, selling expenses and recapture of depreciations).
3. Jack had a loss of 30k for selling stock D in 2022.
4. Jack filled Form 4797 for sale of the rental property, which transferred the information to Schedule D. Schedule showed a gain = 100k (net gain for sale of the rental property C) - 30k (loss from selling stock D) = 70k. Is this correct way to handle this?
5. Can the K-1 passive losses (losses from 2022 and disallowed losses from prior years) for Investments A and B be used to offset the 70k mentioned above? If so, how will you handle this in TurboTax?
Thanks
