I have sold an investment property but the rollover investment expenses are not showing against it. How do I get them from rollover to the sale expenses?

[b123]

I have put investment interest expenses, under Retirement and Investments, to a piece of property for years and other things such as maintenance.  Now those roll over, but I have sold the property, listed under Investment Income, and I wonder if I must manually put them into the sale NET price or is there some magic to it.  

[Anita01]

What do you mean by "put " these expenses to a a piece of property?  Do you mean you have taken deductions for them?  By rollover, do you mean you did a like-kind exchange?

[b123]

As I said, the investment expenses have been listed under Retirement and Investments over the years for a piece of property held for speculation.  Now that I have sold the property, I need somehow to take those expenses and use them to lower the net profit.  These expenses have never been allowable deductions prior to that and they roll over every year.  You have to have a sale for expenses to go against to use these expenses.

[Anita01]

look for a carryover worksheet under the list of forms in your return.  Go to Forms on the upper right, then click on the carryover Worksheet to find any disallowed expenses from this property.  If there is such a carryover, then the disallowed losses should automatically be taken when you say you sell the property.

[b123]

Yeah, i found the worksheet, but is not obvious how to force the disallowed amount automatically list under the long term capital loss or gain.  I do not think that the worksheet realizes that the sale of the property is related to the disallowed amount. How would I force that to happen?

[b123]

Of course there is a long term capital gain loss carryover too, but they are not he same.  It will roll over and take minus 3k per year.  I want to roll them together.

[Anita01 · Accepted solution]

You would add the related disallowed loss carryover to the property by adding it to your cost basis.  Delete it from the carryover worksheet.  Allow the program to choose to carryover the remaining capital loss as it normally would.  If the other loss carryover is not related to this property, it can't be used directly in the sale.

[Anita01]

You would add the related disallowed loss carryover to the property by adding it to your cost basis.  Delete it from the carryover worksheet.  Allow the program to choose to carryover the remaining capital loss as it normally would.  If the other loss carryover is not related to this property, it can't be used in the sale.

[b123]

Thanks.  That is kind of what I figured to begin with, but I wondered if Turbo Tax would associate them together for me.  Apparently not.  I appreciate it.

[b123]

Hopefully last question, interest paid on the investment property along with expenses for maintenance should be deductible, right?

[Anita01]

if you have not claimed the interest elsewhere on your return, it could be added to the cost basis now along  with maintenance costs.

[b123]

Thanks!  Just wanted to double check.  I thought so.  They definitely have not been used.