passive activity loss in yr of sale

[DixieEA]

Taxpayer had rental home that has $125000 gain on sale. Was sold at end of 2006.
Sch E shows loss for 2006 of $6500. Since he has a gain on sale of $125000, his AGI
is over $150000 and rental loss not allowed. How does taxpayer use the $6500 rental
loss on return?

Help, DixieEA

[Dervis]

Disposition

Can you mark it as a total disposition of a passive activity? That should allow the passive loss.

[DixieEA]

Thanks

Thanks Dervis, it was a total disposition, now I have the loss.

DixieEA