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cmbuss01
Returning Member

How to do you report the sale of a rental property in a partnership? Filing 1065 and this property has a loss carryover. How is that handled?

 
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Carl
Level 15

How to do you report the sale of a rental property in a partnership? Filing 1065 and this property has a loss carryover. How is that handled?

Work it through the rental section of the partnership return. One of the screens at the start of the rental section has a selection for "I sold or otherwise disposed of this property in 2016". Select it, and press on AS IF you did not sell it. When you get to the summary screen, you'll enter all rental income (even if a big fat zero), then all rental expenses. Then you'll work through the Sale of Assets/Depreciation section and work through each individual asset one at a time. As you work through each asset, indicate that "I stopped using this asset in 2016" and work it through.

since the property was sold, you will select NO for the special handling required screen. Read the details. The small print is there for a reason. (People still don't read the small print, and screw this up 90% of the time).

The program will take care of the carryovers when you are done. (Not when you're done with the rental section...when you're done working through the entire program). All the final numbers will be on the K-1 then.

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