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ehpingree
New Member

If I have passive income losses from a rental property in 2016 and then more losses in the 2017 before selling, do those losses offset gains on the 2017 house sale?

I am also curious how this gets reported on my state returns (I live in MA, but the house was in VT).  Thank you!

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MarilynG
Expert Alumni

If I have passive income losses from a rental property in 2016 and then more losses in the 2017 before selling, do those losses offset gains on the 2017 house sale?

Yes, the passive losses for 2017 would be applied to the gain from selling the rental property, along with any other carryover passive losses you were not able to deduct earlier. 

Here's some info about selling property at a loss:

https://turbotax.intuit.com/tax-tips/rental-property/selling-rental-real-estate-at-a-loss/L2RKgClm4

As far as MA is concerned, from looking at the MA Dept of Revenue site, it is handled in much the same way as in the Federal Return. 

You should see the amounts flow through from the Federal portion to the MA return.

Here's a link to the MA DOR you may find helpful:

https://www.mass.gov/service-details/learn-about-capitalordinary-gains-and-losses

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2 Replies
MarilynG
Expert Alumni

If I have passive income losses from a rental property in 2016 and then more losses in the 2017 before selling, do those losses offset gains on the 2017 house sale?

Yes, the passive losses for 2017 would be applied to the gain from selling the rental property, along with any other carryover passive losses you were not able to deduct earlier. 

Here's some info about selling property at a loss:

https://turbotax.intuit.com/tax-tips/rental-property/selling-rental-real-estate-at-a-loss/L2RKgClm4

As far as MA is concerned, from looking at the MA Dept of Revenue site, it is handled in much the same way as in the Federal Return. 

You should see the amounts flow through from the Federal portion to the MA return.

Here's a link to the MA DOR you may find helpful:

https://www.mass.gov/service-details/learn-about-capitalordinary-gains-and-losses

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
ehpingree3
New Member

If I have passive income losses from a rental property in 2016 and then more losses in the 2017 before selling, do those losses offset gains on the 2017 house sale?

Perfect. Thanks so much! I really appreciate it.
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