Sorry, I meant the property was sold on 3/19 and I am working on the TurboTax 2019. 

I did all that except the 4797 only deducted the suspended passive rental, it did not recaptured depreciation for all the passed years. Besides, these recaptured depreciation is supposed to be treated as regular income?  If the amount are to be included on 4797, that will be governed by capital gain rules?

much appreciated 

Much of the program is still not functional ... the form 4797 will not be fully operational until 1/23 ... wait for it. 

I also noticed a weird situation with TT2018 (since TT2019 is not stable yet).

As I mentioned that I have 3 rental properties, property 1 is sold, and property 2 and 3 are still active rentals. And I am not allowed to have passive rental loss.

So, when I go into Property 1, select Property Profile, mark property as Sold.... all is good (I went to check Schedule E, Property 1 now has shown suspended passive loss (which should be the case, as I have sold the property).

However, when I continue to the Assets/Depreciation portion of Property 1, and enter sale date, sale price, etc.. Suddenly on Schedule E, both property 2 and 3 suddenly allow Deductible rental real estate loss (instead of showing zero on Deductible rental real estate loss) as if all three properties are "bundled together"?

Thanks

Look again ... once you sold the property and if it lowered your AGI the formerly unallowed losses are now allowed ... review the entire return again especially the passive loss form and sch e. 

thanks for your help and quick reply.

I don't think it's the AGI...  Could TT think that all 3 properties are aggregate together? I vaguely remembered that there is a rule that you can elect to consider multiple properties to be considered as one (in determining the Active Participant rule) which I never did, all my 3 properties are separate.

Thanks

No... if they are listed as 3 separate properties on the Sch E then that is not the issue.  All I can say is review the mock sale return over carefully  and maybe seek local professional guidance or call TT support for more guidance since I cannot see your return. 

you are right!!

I find out since due to the depreciation recapture, the sold property has incurred big income (4797), so that the property 2 and 3 loss are now permitted!!!

Thank you so much!

You are welcome ... it is interesting how one piece of the puzzle will affect the rest ... now you know what the 2019 return should look like. 

You are amazing!  Thank you so much for your patience with me!

Yeah, I got the picture! Thanks again!