topic If I had rental income in 3 months and sold the property for a loss how much of the loss can I deduct? (Total loss is 23K against only $1050 in rental income) in Investors & landlords

If I had rental income in 3 months and sold the property for a loss how much of the loss can I deduct? (Total loss is 23K against only $1050 in rental income)

mfairchild066 — Thu, 06 Jun 2019 15:51:06 GMT

Did you actually sell at a loss? Don't include any mortga...

SweetieJean — Thu, 06 Jun 2019 15:51:07 GMT

Did you actually sell at a loss? Don't include any mortgage payoff in the calculation.

Yes the purchase price was 62k sold for 31k

annat9612 — Thu, 06 Jun 2019 15:51:09 GMT

Yes the purchase price was 62k sold for 31k

I received income from the rental for 3 months. Sold in t...

mfairchild066 — Thu, 06 Jun 2019 15:51:10 GMT

I received income from the rental for 3 months. Sold in the 4th month and sold for loss of 23K. TT is deducting the entire loss against the $1050 instead of limiting it to the $3000 I thought I had to do. Confusing.

Was it always a rental since you owned it, or was it orig...

TaxGuyBill — Thu, 06 Jun 2019 15:51:12 GMT

Was it always a rental since you owned it, or was it originally your personal-use property and then you later converted it to a rental?

Aleays a rental, never converted

mfairchild066 — Thu, 06 Jun 2019 15:51:13 GMT

Aleays a rental, never converted

Always*

mfairchild066 — Thu, 06 Jun 2019 15:51:15 GMT

Always*

TurboTax is doing it correctly. The full amount of loss...

TaxGuyBill — Thu, 06 Jun 2019 15:51:16 GMT

TurboTax is doing it correctly. The full amount of loss is allowed, and is not limited to $3000 a year.

So the difference (21k) can offset my nonpassive wage inc...

mfairchild066 — Thu, 06 Jun 2019 15:51:18 GMT

So the difference (21k) can offset my nonpassive wage income? Sorry so many questions. Just seems like a huge wage reduction resulting in a huge refund. Dont have anymore properties so this wont happen again, just dont want to get wammied 5 years down the road! Thanks for all your help!

Yes (assuming it wasn't sold to a related party at less t...

TaxGuyBill — Thu, 06 Jun 2019 15:51:18 GMT

Yes (assuming it wasn't sold to a related party at less than Fair Market Value), the loss can offset any other income.

Thats awesome then. Yay for refunds! Lol Thanks Bill!

mfairchild066 — Thu, 06 Jun 2019 15:51:19 GMT

Thats awesome then. Yay for refunds! Lol Thanks Bill!