I had an uninsured loss to a property of $33,000 in 2006. I sold the property last year. Can I deduct the loss from the sales amount if the loss was never depreciated? (It was paid to a disaster restoration company)
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If you already took the expense, which you probably did the year you paid the company to do the repair, then no, you can't deduct it again.
What about the unallowed losses due to maximum amount being exceeded? Can they be claimed?
Yes, the unallowed losses can be carried forward from prior years. The losses can be used when you sold the property in 2021.
Rental property passive losses that are not deductible right away are called suspended passive losses. These deductions are not lost forever. Rather, they are carried forward indefinitely until either one of two things happens:
If the Carryover real estate losses have not been included in your return since 2006, they can be entered in the Property Profile section of the rental information for the year of the sale.
To access the rental section of TurboTax:
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