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Deductions & credits
You are correct. The accumulated passive activity losses (PALs) will be carried over until the year you sell the property or used a small amount at a time up to the net income after current year deductions if applicable in any year In the year of disposition/sale you will be allowed to deduct the full amount of all combined losses that are carried over from your rental activity or activities.
If you have only rental income, then the QBI deduction is also from this activity. If you have self employment income then it could be coming from that. You will see this information on Form 8995 in your return currently and in prior years.
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March 11, 2024
7:41 AM
1,005 Views