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    sale of rental house

    I have losses to carry over when I sold rental house. Is the $ 25000 rule to do with this?

    #2
    It would be a 1231 loss which basically would have the same effect you are looking for (deduction against ordinary income). Carry back before you carry forward though.

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      #3
      When you sell the rental, you release ALL the losses that year, no limit of $25,000.

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        #4
        Originally posted by Lion View Post
        When you sell the rental, you release ALL the losses that year, no limit of $25,000.
        I thought he was referring to the special $25k allowance which allows losses against ordinary income.

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          #5
          Does the $ 25000 apply or am I getting it confused with limitation of rental yearly loss?

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            #6
            Originally posted by tomthomas View Post
            Does the $ 25000 apply or am I getting it confused with limitation of rental yearly loss?

            No. If the rental house is sold in a "fully taxable transaction", there are no limits at all.

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              #7
              Originally posted by Dude View Post
              I thought he was referring to the special $25k allowance which allows losses against ordinary income.
              He was. It just does not apply in the year when the property is sold. Therefore, the current loss, if any, and all previous disallowed losses come into play in the calculation of gain/loss.

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