Hi JulieS: Thanks. Just a couple of follow-up questions.
If after the ordinary income (recapture of depreciation) is addressed, Schedule D (gain from selling of the rental property against stock losses) calculation shows a positive number, can one use the prior year disallowed passive losses from K-1's (form 1065) for other unrelated properties to offset the positive number?
There is a debate where one should enter the rental property sale information. Some said that it should be entered under Rental Properties and Royalties - sale of property/depreciation. Others said that it should be reported under Business Items - sale of business properties. Your thought?
At the time of initial rental, TurboTax chose fair market value as the depreciation base which was lower than the adjusted cost base. When entering the rental property sale information, what should be entered for "Cost of Property (or Tax Basis) Plus Expense of Sale? Should it be adjusted cost base at the time of purchase + renovation cost + expense of sale?
Finally, can you add what you paid for condo documents (legal and financial) at the time of review for purchase and conveyance charge (legal transfer from seller to buyer) to the cost base of the condo purchase?
Thanks so much.
