Deducting suspended losses of multiple properties from capital gain when selling a particular property

[esarnc]

I have 5 rental properties (A,B,C,D & E) and I have prior years un allowed suspended passive loss of $X amount (combination of all the 5 properties). Last year, I sold property E and I have a capital gain $Y.

TT is using a portion equivalent to $Y from the  un allowed suspended losses from the combined properties to deduct from the capital gain.  Is this right? I thought only the suspended loss from property E should be used and not from the other properties? 

[Critter-3]

The unallowed losses on the sold rental will be reported on the Sch E line 18 and depending on your total income on the return the PAL form 8582 pay release some of the unallowed losses ... the program automatically does this correctly so review all the forms and worksheets. 

You can peek at only  the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2)  then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.

To pay the TurboTax online account fees by credit card, without completing the 2021 return at this time, click on Tax Tools >>> Tools  and then Print Center.  Then click on Print, save or preview this year's return.  On the next page, to pay by credit card, click Continue.  On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button.  The next screen will ask for all your credit card information so you can pay for the account.

[AmeliesUncle · Accepted solution]

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@esarnc wrote:

 I have a capital gain $Y.

TT is using a portion equivalent to $Y from the  un allowed suspended losses

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Passive losses can be used against passive income.  You sold the property at a gain, so you have passive income for the other losses to be used against.

[Carl]

I seem to recall something about suspended losses not being fully deductible until the tax year you sell "all" passive income producing properties.

[M-MTax]

I seem to recall something about suspended losses not being fully deductible until the tax year you sell "all" passive income producing properties.

Bet you're thinking of when properties are grouped. Then you've got to sell all of them before suspended losses are released.

[Carl]

Bet you're thinking of when properties are grouped.

Ah yes! That's it exactly! Thanks for clarifying that for me @M-MTax 

[esarnc]

Thanks.

I thought, I can only use the losses of a particular property against that property's income.