Disallowed loss on rental property which was sold in 2017

[origun]

Taxpayer has 4 rental homes and in 2017 three of the 4 had losses with a net loss of about $12k. His income was about $145k so most of his Schedule E losses were suspended. However, he sold one of the properties late in 2017 at a gain. That property had a Schedule E loss of about $2500 in 2017; there were no suspended losses from prior years. Can he take that entire loss in 2017? If so, how will it be shown on the return? Should it just be omitted on form 8582 where other losses are pro-rated between the suspended loss and those that can be taken in 2017 and added to the Sch. E allowed losses that come from the 8582? [Part of my problem is figuring out my software…but I want to be sure I know how and where it should end up…and then I can play around with software.]

[Anarchrist]

The $2500 loss is deductible in 2017.

Your software probably has a checkbox for complete disposition of passive activity. Check it for that rental. Enter the sales info properly for your software and it should handle the 4797 and 8582 correctly.