@Carl Thank you so much for the quick response, it gave me a huge relief and I do need your further assistance, and here are some specifics:
1. The rental was never a primary residence, 0 personal use throughout the years, from purchase date to sale date.
2. Taking off from TT on 1/1/2015, sold on 5/6/2021. It stayed vacant from 2015 till 2021 with no personal use.
Thanks to your detailed instructions on reporting the sale in the section of Sales of Business property, all relevant information was entered in that section based on the blue printed instruction as you mentioned and it was a loss. I have the following additional questions:
1. I could not find a place to claim the unallowed passive loss(from Form 8582) for the rental cumulated before being taken off TT. Can you please provide further guidance on that?
2. I don't see the prior depreciation being recaptured as being added to AGI, even though that amount was entered in the sale of business property section under "Depreciation taken", not sure if the prior depreciation amount is to be entered in any other section in addition to sales of business property section to be shown as being added to AGI? or is it buried in any line of Schedule 1 or Form 4797?
3. I wonder if I can add the rental back to TT in 2021, with 0 days of both business and personal use, as an alternative way of reporting the sale, it seems that in the rental section a passive loss carryover from prior year can be added; if that is a valid alternative, can the rental claim 2021 expenses such as utilities and property tax etc. in Sch E in addition to the passive loss carryover?
Thanks again for your help!
