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[Tax2019Pay]

D

[Mike9241]

1. TurboTax automatically put the net gain also under "Business Items - Sale of Business Property".  Is this correct?  Does this result in double counting? yes it is correct and no there is no double counting the 4797 gain flows to schedule D and it's schedule D that flows to the 1040

2. TurboTax automatically filled the rental property sale information on Form 4797 and also Schedule D.  In Schedule D, it offset the rental property sale gain against stock losses - the net result is included on Form 1040 Line 7 Capital gain or (loss).  disposal of passive. disposal of passive activity frees up suspended passive losses look a t form 8582

[Tax2019Pay]

When you say, "disposal of passive. disposal of passive activity frees up suspended passive losses look a t form 8582", do you mean "freeing up the suspended passive losses from the rental property in the year you sold the rental property"? Or do you mean "freeing up the suspended passive losses for this rental property and also for other suspended carryforward passive losses for other passive investments"?

[AbrahamT]

Suspended passive losses mean losses that couldn't be used in the prior year which had to be carried over to the currentr year. This could have included losses from both  the rental real estate and the other carryforward losses from other investments. So for example if your passive activity loss was more than your passive activity gain in 2021, that would be considered a suspended loss carryover which could be used in the current year against the gain you received from the sale of the rental property. Once again, if the losses exceed the gain of the sale of the sale of the property, then this will once again  be disallowed in 2022 and carried over to 2023. See HERE and  HERE for more information relating to this.