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    Rental loss from sale of a rental house

    Taxpayer is a retiree. His income has social security benefits and a regular Savings account.
    He sold his rental house in 2016 and had a loss of 300,000.

    How can he claim the rental loss in 2017?

    Thank you for your advice.

    #2
    No.

    If it was sold in 2016, it goes on the 2016 tax return. If the loss offsets all other income on the 2016 tax return, you probably have a Net Operating Loss (NOL) that can be carried to an amended 2014 tax return (if it is not used up in 2015, the excess is carried to 2015, then 2017).

    When you said it was sold at a $300,000 loss, does that include the depreciation that lowered the Basis? If it was originally a personal-use property and was later converted to a rental property, did you account for the possible Dual Basis rules (if that applies and you are unsure of what I mean, please post back)?

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      #3
      Claiming large loss on sale of rental property

      Originally posted by TaxGuyBill View Post
      No.

      If it was sold in 2016, it goes on the 2016 tax return. If the loss offsets all other income on the 2016 tax return, you probably have a Net Operating Loss (NOL) that can be carried to an amended 2014 tax return (if it is not used up in 2015, the excess is carried to 2015, then 2017).

      When you said it was sold at a $300,000 loss, does that include the depreciation that lowered the Basis? If it was originally a personal-use property and was later converted to a rental property, did you account for the possible Dual Basis rules (if that applies and you are unsure of what I mean, please post back)?
      I'm also trying to wrap my head around a potential $300k rental loss on disposition of the property.
      There must be some information missing here, quite possibly depreciation "allowed or allowable."
      The 2016 Form 4797 might also be informative.

      FE

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        #4
        Originally posted by mooretax View Post
        Taxpayer is a retiree. His income has social security benefits and a regular Savings account.
        He sold his rental house in 2016 and had a loss of 300,000.

        How can he claim the rental loss in 2017?

        Thank you for your advice.

        Why dont you give us some details...

        purchase date rental
        purchase price rental
        depreciation taken
        sale price
        sale date


        Chris

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