Carryover Loss in the case of rental property ownership change

[hongtaol]

I co-own a few rental properties with another owner. We used to report 50/50 on schedule E and have carryover loss from previous years on all the properties. From this year on, we will change the ownership in tax reporting to 0/100 or 10/90. In either case, how can I keep the carryover loss from previous years if i no longer report some of the properties? Is there any other process involve to make sure I can keep the loss for future tax returns?

[M-MTax · Accepted solution]

Suspended passive losses are on your 8582 and you don't need to do anything as long as you have that form. The percentage change is problematic because it's presumed you own 50/50 unless you agree to a different percentage BUT then that would create a partnership. Get a pro to help.

[rjs]

Answered in response to your earlier post of the same question.

Please keep all the discussion of your problem in one thread. Do not post separate questions about the same issue. It's too confusing and hard to follow, and hard to see the whole picture, if information is scattered in multiple threads. If you want to add more information or post a follow-up question, add a reply to your original question.