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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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March 17, 2021
2:36 PM