Rental ignored; nothing in, nothing out.

[Possi]

Cap loss carryforward

Those rental properties had hefty Loss carryforwards as well. (Near $200K together) They were Florida rentals hit by hurricanes in the past.

I do not think he can still carry these losses forward because they were probably paid with loans that the friend is now paying.

I am leaving the properties on the return, have stopped depreciation on everything associated with these 2 properties. When it didn't zero out, I realized there were those losses carrying.

Do you agree to stop the loss carryforwards as well?

[Gretel]

More info is needed to answer this question. It depends if you mean passive activity losses or at-risk losses and if indeed partner did take over any loans.

Someone else then needs to answer this question, I just know enough to be dangerous.

[Possi]

Thanks Gretel!

More info is needed to answer this question. It depends if you mean passive activity losses or at-risk losses and if indeed partner did take over any loans.

Someone else then needs to answer this question, I just know enough to be dangerous.

Hi Gretel,
Since he is not actively participating in these two rental properties anymore, and I am sure the friend has assumed this loss, he cannot carry the loss on the return.
It isn't like a Sch D loss....

You have helped me tremendously with this tax return. I thank you so much. And I'll be glad when it is filed and off my desk!

=)