Not sure. I read that f the 'sold' box is checked, the entire transaction is considered to be a fully taxable transaction and losses are not limited to passive activity rules. I think passive activity rules apply to my rental properties, so I did not check the 'sold' box. In the asset section, all questions answered as to acquisition and disposition dates, and special handling needed. I think I need to read up on passive activity rules - I don't think I can take a loss on my gift of close to $60,000. I'm just not sure if all this is reported correctly on my 1040.
