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Level 1
June 6, 2019
Solved

On rental property sold in Dec, TT says if married, filing separately, live w/ spouse, allowable losses are reduced to zero. But, software is showing loss. Why?

  • June 6, 2019
  • 1 reply
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I sold a rental property in December 2017 that had losses for two prior years that wasn't allowed to be reported because they were passive.  But, TT shows a loss on the 2017 return that is the carryover amount from the prior years plus the current year.  But, TT "Help" says that if married and filing separately, and lived with spouse during the year (which is our situation), the allowable losses are reduced to zero.  Why is the TT software not recognizing this exclusion? 

Best answer by TaxGuyBill

When the property is sold, all Passive Losses for that property are allowed.

1 reply

Level 13
June 6, 2019

When the property is sold, all Passive Losses for that property are allowed.