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RUBE
New Member

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

I inherited land from my parents that they had leased, and on which an early tenant constructed a motel.  The lease and motel were assigned to, and operated by, a succession of lessees. Neither my parents nor I had any control over the motel, its upkeep or its operation.  In late 2014 or early 2015 the City condemned and ordered demolished the motel, effectively terminating the lease prematurely before its contractual termination date in June 2015. The last assignee/lessee/motel operator then abandoned the lease, the motel, and its operation, having paid no rent since 2014.  The net result of this left me owning a motel that neither I nor anyone in my family built, operated or controlled in any way.  I claimed a business loss for 2015 for legal fees, insurance, minor repairs, etc., totaling $18,465, but was limited to a $9917 deduction.  Now for 2016 I want to claim the $8548 carryover, but TurboTax says I can't do this since I had no income from this property in 2016.

1 Best answer

Accepted Solutions
DianeW
Expert Alumni

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

Enter your rental activity as though it was rented all year. Select the box for "I have passive activity real estate losses carried over from a prior year". (see the image attached)

If you still own the land and it will be rented in the future, and you have not sold or disposed of it, then it is still an ongoing business concern with or without income.  You may be allowed some or all of the loss in 2016.

  • To begin in TurboTax (online or desktop:(
    • Use the search box, upper right
    • Search for rentals
    • Jump to rentals (see image attached)
    • Follow the prompts to the Rental Summary > Edit next to this activity
    • Continue to the "Situations" page.

View solution in original post

5 Replies
DianeW
Expert Alumni

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

Was it reported a a rental or real estate or a business activity in 2015?
RUBE
New Member

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

Yes, on Form 8582 as a rental (but with no income for that year) , and on Schedule E, line21 $18,465, and line 22 allowed $9917.
RUBE
New Member

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

Diane, thanks, but how do I get to the "Do any of these situations apply.." page?
DianeW
Expert Alumni

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

Sure - I will update the answer below.
DianeW
Expert Alumni

Can I claim a 2016 carryover from a 2015 Rental Real Estate Loss deduction for property that last produced rent in 2014, but none in 2015 after condemnation by the City?

Enter your rental activity as though it was rented all year. Select the box for "I have passive activity real estate losses carried over from a prior year". (see the image attached)

If you still own the land and it will be rented in the future, and you have not sold or disposed of it, then it is still an ongoing business concern with or without income.  You may be allowed some or all of the loss in 2016.

  • To begin in TurboTax (online or desktop:(
    • Use the search box, upper right
    • Search for rentals
    • Jump to rentals (see image attached)
    • Follow the prompts to the Rental Summary > Edit next to this activity
    • Continue to the "Situations" page.

View solution in original post

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