I have a few rental properties that have carryover loss from previous years. From this year, I am not going to report these rental properties on my Schedule E because of the ownership change. I would like to know if there's a way to keep the carryover loss from these rental properties after I delete the individual Schedule E. Also, if I start to report them again in a few years, is there a way to add back the carryover loss from the previous years?
You need to get some professional advice here.
There are a number of issues in regards to your transaction:
What do you mean "ownership change "? Did you sell them ? Gift them ? Transfer to a grantor trust ?
You need to get some professional advice here.
There are a number of issues in regards to your transaction:
Thank you!
Here's the situation. I co-own the properties with another owner. We used to report 50% each on Schedule E. From this year on, I will not report but he will take 100% of the reporting. Only for reporting tax purpose. Do we need any process? How can I add the carryover loss to the cost basis of the property?
so we can possibly give better advice, we need to know the method by which ownership changed. change one way and your carryover losses would permanently be lost. change a different way and they are recognized in the year of change. consultation with a lawyer is certainly advisable so you can accomplish your goal and hopefully minimize adverse tax consequences.
Seek local professional assistance for this issue especially if you never set up a partnership return. If you are not getting out of the ownership completely by gifting the property then not claiming the income/expenses/depreciation on your return may not be legal. A tax attorney may be needed.
Can you elaborate on "change a different way and they are recognized in the year of change"? How to do this?
Also, if we just change the ownership from 50/50 to 10/90, will still be an issue?