I understand I can use my passive carryover loss, without limitation, when I sale the rental. So, after I've entered the sale info in Asset Worksheet, Sched. E line 22 posted the whole amount of carryover losses, incremented by current year's loss. This is because in the year of sale, I had no rental income only repair expanses while preparing property for sale.
1. Form 8582 Worksheet 1 column (d) correctly calculated OVERALL GAIN/LOSS by subtracting from
column (a) accumulated passive carryover loss ($160,000)
and this is the last place I saw that $amount taken into consideration.
2. I checked 4797 and the gain from sale has been calculated as follows:
sale price - adjusted basis + accumulated depreciation.
No passive carryover loss taken into the account.
3. Schedule D calculated capital gain based on 4797 calculated gain from sale.
4. Schedule D worksheet calculated 15% tax on capital gain
5. Schedule 1 line 22 calculated and adjustment to income by subtracting sale of rental from total capital gains
6. And that adjustment has been added to 1040 line 6 to increase Adjusted Gross Income.
Does that mean that the carryover passive loss I carried for years did not help me to lower the gain on sale the property and lower my capital gain tax?
