ThomasM125
Expert Alumni

Investors & landlords

The passive losses would be carried over from year to year on form 8582 Passive Activity Loss Limitations and be deducted on your schedule E in the year that you sold the property. TurboTax will do this automatically.

 

If you mean a tax assessment, you can deduct it as property taxes on your rental schedule in the year that you paid it. 

 

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