@klkaylor wrote:
1. On schedule E it puts in the carried forward all of the unalloyed losses for the rental that sold but also for a rental that was not sold?
2. It released all prior year disallowed passive losses that then allows allow of my regular income to be negated. My MAGI is greater than 150K so to the best of my understanding I am only allowed to use prior disallowed/carry forward losses to offset 3K of ordinary income. So why did it allow it to use 6 figures of carry forward losses and bring my income to 0?
The program seems to be doing it correctly.
Your Passive Loss Carryovers can be used if you have Passive Income. Because you sold the one rental at a gain, you now have Passive Income, which releases that amount of Passive Loss.
