@Carl Hello Carl,
I wish I had read this thread and your response a few years ago and followed Option 2, but unfortunately, I did exactly the opposite and Sch E for the rental was deleted in Turbotax. Now the rental was finally sold after years of vacancy, what are the steps in TT deluxe to report the sale which is a loss overall? and a few more questions:
1. Can the unallowed loss carried from the last year the rental was on TT be claimed in the year of sale?
2. If each asset(i.e. apartment, capital improvement, air conditioner etc) for the rental has to be reinstated in order to report the sale, do I put in prior year depreciations amounts up till the year deleted from TT(actual) or do I have to put in what should have been up to the year of sale?
3. for the skipped years' unclaimed property tax, insurance and depreciation(if I have to put in prior depreciation amounts of what should have been up to the year of sale), can these be claimed in the year of sale? if so, how to do that? adding these to the adjusted basis or adding to the carryover unallowed loss?
Thank you very much!
