How to handle capital loss on sale of residential rental property

[Dale Watkins]

The tax software is treating loss as nondeductible <53000> although Tax Book indicates on 6-12 under section 1231 that losses are treated as ordinary losses not subject to the
3000 limit. Any help in resolving this conflict would be appreciated.

[okie1tax]

Loss, capital or ordinary

Are you sure you marked it as a complete disposition of business property?

[DaveinTexas]

Good point

My tax software won't release the loss unless the schedule e screen has that box checked, disposed of property this year.

[FEDUKE404]

Question

The tax software is treating loss as nondeductible <53000> although Tax Book indicates on 6-12 under section 1231 that losses are treated as ordinary losses not subject to the
3000 limit. Any help in resolving this conflict would be appreciated.

Is this a personal loss (you're up the creek!) or a business loss?

FE

[taxmom34]

is it 1231 loss or 1250 loss? did you look at the form 4797 and how it transferred to schedule D?