Thanks for all the input.
This now focuses on one topic for me.
All Schedule E’s (Supplemental Income and Loss) have up through 2019 directed me to Form 8582 {Passive Activity Loss Limitations), which due to income restrictions have limited all past losses to zero (0).
While these past limited losses have carried over, now in 2020 when the property was sold, it is my understanding, through Turbo Tax and this Forum, that these cumulative past losses that were limited now all become allowable.
Past losses were composed of yearly expenses and depreciation (Total Expenses) subtracted from Rental Income on Sch E. These have been all losses.
In reporting the sale of my vacation rental house in 2020 on Form 4797 (sale of Business Property), Part I, Line 2(e) indicates “Depreciation allowed or allowable since acquisition”. My question then becomes do I add up all my past years depreciation that was not accepted, or do I put zero (0) for Depreciation?
Thanks
