I did not have income in the year of sale. I paid for repairs to prepare the property for sale. So, in 2018 I had -$20,000 losses and $-160,000 carryover passive losses from the prior years.
After entering the date and sale prices (building and land) form 8582 worksheet 1 in column (d) calculated Overall Gain/Loss taking $-180,000 passive carryover losses into the consideration.
However, form 4797 calculated gain by subtracting the adjusted basis of the property from the sale price and adding accumulated depreciation.
The basis of the property was not lowered by passive carryover losses.
Schedule D used that 4797 calculated gain to calculate a capital gain, without consideration of that $-180,000 carryover passive loss.
So, if I had no income from the rental in the year of the sale, my carryover losses are useless? Do not benefit me at all?
