This post has been helpful in clarifying what is possible, but my problem is trying to get Turbotax to actually do it. Can someone explain exactly how and on what forms to enter everything? My situation is that I sold both (all) of my rental properties in 2021 for a gain and one of them had significant suspended losses, far more than the gains. My understanding is that these losses should be applied to reduce the capital gains to zero and what is left should be a NOL (I think) that can be applied to ordinary income. Right now TT is showing taxable capital gains and still carrying forward the suspended losses. I'm a CPA (who does not do taxes for a living although I did over 25 years ago) so I just enter things on the forms instead of using the step by step. Clearly I'm doing something wrong. The gains seem to calculate correctly on the Asset worksheet for each property under Schedule E, but I can't figure out how to get the suspended losses to behave correctly. I saw in a post where it said to add the losses to the basis, but I don't see where to do that either. I only see where to enter the basis when it was acquired (Asset Entry Worksheet line 4). Do I add the losses to line 22 "Asset expense of sale"? If so, where do I tell TT how much of the suspended losses were used so they stop carrying forward and get the NOL entered and applied against ordinary income?
