In response to your first question it depends on the following:
As mentioned by Mike9241 you can deduct your suspended losses from total profit when you sell your rental property, as long as you meet certain IRS rules. First, when selling your rental property, you must sell “substantially all” of the rental activity. For example, if you own a single rental property and sell it, you have disposed of your entire interest and can take the full deduction. However, if you have more than one rental property, deducting your suspended losses depends on how your properties are structured.
First, when selling your rental property, you must sell “substantially all” of the rental activity. For example, if you own a single rental property and sell it, you have disposed of your entire interest and can take the full deduction.
However, if you have more than one rental property, deducting your suspended losses depends on how your properties are structured.
In response to 2nd question, In general, the passive activity rules limit your ability to offset other types of income with net passive losses. However, if you actively participate in a rental real estate activity, you can deduct up to $25,000 of your rental loss, even though it is a passive activity. During the tax interview, TurboTax will ask if you qualify as an active participant. You might want to revisit the rental section of TurboTax and make sure you indicated you were an active participant. Note that as your income increases, this exception to the passive activity rules phase out. The exception decreases as your modified adjusted gross income (MAGI) goes above $100,000 and is completely phased when your MAGI exceeds $150,000
Review the links below for more information:
Rental Real Estate
Passive Loss Carryover
@songcai22
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
