floryba
New Member

Investors & landlords

Yes, the depreciation is calculated on FORM 4562 and that total amount is entered on my Sch E.  The loss amount on Schedule E is quite a bit higher than the Deductible renal real estate loss.  So I see what you are saying... the depreciation amount gets folded into the passive loss carryover amount.  Correct?  So I'd have to pay 25% on the depreciation, 20% on the capital gains, then offset it with the passive loss carryover amount.  Did I get that right?