I have entered the rental property (Sched. E) sale information in Asset Worksheet lines 19 to 25 (date of sale, asset sale price, land sale price). Form 4797 calculated the gain taking into the consideration accumulated depreciation but NOT passive loss carryover. Schedule E line 22 shows the correct "Deductible rental real estate loss" negative dollar amount which by law, I should be able to deduct during the sale of rental. Disposition Report column "g" is also blank. So, Schedule D calculates the tax on the full gain which is not correct. Can you help?
