Hi there - this is an old thread but wondering if someone can answer. I sold my previous residence which I rented for the past 1.5 years (lived in it prior to that). I have carryover loss from the rental.
1. What happens to the carryover loss? Someone mentioned in a thread I could use it offset 'other income' but not sure what that means (ie: 'ordinary income'?)
2. Do I pay depreciation recapture on the depreciation I took while it was rented? I thought so but was told from someone this would not apply in my situation since I sold a prior residence. On a side note, the depreciation is roughly the same amount as my NOL (so I am wondering, if these would just cancel out somehow)
thanks for any feedback.
