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3integra
New Member

What to do with suspended losses on a rental property sold via a 1031 exchange?

I sold a property (held >1yr) via a 1031 exchange and used all but $4k of the ~$200k proceeds. After the sale, I have 4 remaining properties, some with a net income for 2017. All of the properties are itemized on Schedule E. 

Since this is not a "qualifying" disposition, what do I do with the $23k suspended loss given the partial 1031 exchange? Can it be applied to other passive income, other property sale gains, other stock gains?

I don't see where I can delete this question. I found the answer: https://ttlc.intuit.com/questions/3028682-we-sold-a-rental-property-through-a-like-kind-exchange-we-...

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1 Reply
DanielV01
Expert Alumni

What to do with suspended losses on a rental property sold via a 1031 exchange?

When you do a like-kind exchange, loss is not recognized.  The reason is that the new property takes over the holding period of the original property.  Therefore, although you have realized loss, the loss does not get recognized, or reported, until the new property is sold.  Then, any loss you had will become recognized.

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