Error during Federal Review

[vdots]

I am getting an error during federal review. In carryover wks, line 24 col 1, which is pre-populated with disallowed carryover from 2018 for improvements I made to my rental property. I sold the property in 2019 without any rental income in 2019. Col 2 (2019) of line 24 entry is blank. How do I fix the problem?

[Carl]

I suspect you have more than one item listed in the "Sale of Assets/Depreciation" section. Is this so? I know you have at a minimum, the property itself listed there. Do you also have additional items that are/were being depreciated?

[vdots]

I tried replying to your email and it bounced, but here is what I had to say...

No, just the property. The ‘disallowed carryover’ comes from improvements I made to the property in 2018. Since I sold the property in 2019 and did not have any rental income that year, I think I should just zero out the entry in line 24, col 1 and add the disallowed amount to my cost basis in the sale of business asset section. It seems to work, but wondered if there is “correct” way to do this.