Sale of rental houses
Client hasn't received a 1099. I reported the sale of 12 rental houses on a 4797 also a 8949 and schedule D. He still has 4 he rents at a loss. After adding up his cost and depreciation his gain is 66000. He has a loss on his rentals before he sold them. He and his wife are over 65 and both collect SS. I use Drake and my question is he doesn't owe any taxes. I'm listing all the schedule E's and using one for all the expenses. Maybe I need to check with Drake?
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What exactly is your question? Are you wondering why there is no tax?
If there were carryover Passive Losses (Form 8582), those losses from the sold properties would be released and useable on Schedule E. Are those showing up on the Schedule Es? In fact, if the carryover losses were large, they could create a NOL.
Any losses from the unsold properties could be used against the Passive Gain from the sale of the other properties.
As a side note, I'm a bit curious what you mean by "I'm listing all the schedule E's and using one for all the expenses". I hope you are entering the expense for a property ON that specific property's column on Schedule E. -
When you manually calculate, what do you calculate as being the tax amount should be?Originally posted by jroberts View Post
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