As always thanks to all for replying. I have reviewed Publication 536 and gone over the worksheet and agree it is not simple. I may need to consult a professional but figured I would try to see if I can push through this by asking questions. First here is what TT did on my 2018 taxes when I sold my rental property in 2018:
- Used Form 4797, Sale of a Business Property to calculate the capital loss when I sold the rental property and transferred to Schedule 1, Line 14.
- Used Schedule E to calculate final year (since I did own it for half of 2018) income/expenses and to bring forward the total operating losses that had been suspended and transferred the total to Line 17 Schedule 1
- Totaled all lines on Schedule 1 (which included investment capital gains from Schedule D). This resulted in a negative number and transferred to Line 6 on 1040 but only used a portion of the total to apply to my return and line 7 (AGI) is listed as a negative number.
Therefore when I look to fill out Worksheet 1 I assume I am filling it with numbers from my 2018 return to see if there is a NOL to carry forward to 2019 (which is my first question). Also line 1 says to subtract your itemized or standard deduction from your AGI. My 2018 AGI (line 7) is a negative number but is that what I am to use?
