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Returning Member
posted Dec 31, 2024 8:14:42 AM

gift real property to relative prior year accumulated loss on rental property

In 2024 I gifted a rental property to my son. There were prior year year accumulated losses that have not yet been allowed to be taken - as I understand it, I cannot take these losses on my 2024 return and beyond because I gifted the property to a relative. How do I eliminate these balances in turbotax? Just manually enter a zero in each prior year accumulated loss? 

John

[email address removed]

0 1 1939
1 Replies
Level 11
Dec 31, 2024 9:13:56 AM

Not sure how this is handled in Turbotax but you need to keep track of the accumulated losses.

 

Because the losses are passive activity losses, the total of all of your passive losses on this property will increase the basis of the property in your son's hands.