Passive losses applied to sale of investment property (all losses or only some?) - Spidell

Passive losses applied to sale of investment property (all losses or only some?)

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Message Board Passive losses applied to sale of investment property (all losses or only some?)

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    • #188918
      Anonymous
      Member

      In the past, if a client owned multiple properties and some or all carried passive losses forward and the client sold one of the properties, all passive losses would be ‘released’ to apply against that sale.  I just worked up a projection for a client but in this case, only the losses for that one specific property were applied.  Is this a change to the process?  Did I miss something in the tax code that changed?  Were only the losses from a specific property to be applied all these years and I didn’t catch that in the code?

    • #190384
      Mike Giangrande
      Participant

      Anonymous,

      There are no Code changes in this regard. Check your tax planning software because you have an error somewhere.

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