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I've rented out a property w/ a property manager for the last 7 years. I manage it now; how does the active/passive loss work now and how will it affect me when I sell?
I'm anticipating selling the house for around 15,000 less than purchase price (bought in early 2007). I'm hoping to sell the house within the next year, so I'm not sure if previous passive losses (around $20,000) will still carry over and apply upon the sale of the house. On that note, should/can I claim this years losses as passive?
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June 6, 2019
8:17 AM
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Investors & landlords
Yes, your passive losses will come into play in the sale.
Any
disallowed rental loss is carried forward to the next year along with all
previous years' disallowed losses. Those can be applied to any subsequent
passive income from that rental and are completely released for deduction upon
sale of the property.
June 6, 2019
8:17 AM