Suspended passive losses are designed and allowed to be used when there's passive income to offset it. Only the suspended loss from the one sold is allowed to be used if there is not enough gain from the sale to absorb suspended losses from other rental properties.
The reason is that you have not fully disposed of the other two rental properties. Even if you had decided to 'aggregate', or treat as one property for tax purposes, you haven't fully disposed of the other two properties.
For this reason, the only allowed suspended losses for 2024 are the losses for the property sold.
If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help. If you would like to do this, here are the instructions:
TurboTax Online:
Go to the black panel on the left side of your program and select Tax Tools.
- Then select Tools below Tax Tools.
- A window will pop up which says Tools Center.
- On this screen, select Share my file with Agent.
- You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
- Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.
TurboTax CD/Download:
If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:
- Click on Online in the top left menu of TurboTax CD/Download for Windows
- Select 'Send Tax File to Agent'
- Write down or send an image of your token number and state then place in this issue.
- We can then review your exact scenario for a solution.
- Please also tell us any states included in the return. This is necessary for us to view the return.
We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.
@demens13
[Edited: 02/07/2025 | 4:05 PM PST]
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