When you sell rental property with an overall loss, the loss will first carry to the Form 4797, Part II, and then an overall loss carries directly to Schedule 1, Form 1040. A loss will bypass the Form 8949, and Schedule D, because it is a loss that is allowed in full in the year of disposition (sale). TurboTax will take care of this flow by providing all the necessary information in the rental activity.
A business loss is not limited by the personal capital losses associated with Schedule D.
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