How does a loss on a rental property sale work? Can it be carried forward?
We bought in 2006 in CA at $295000. The property might fetch $200000 now.
Answers | 1
Check with your tax advisor for specifics in your situation. There are exceptions for Real Estate professionals and special rental loss offsets for landlords under certain income levels, In general, the tax rules provide that you may deduct your suspended passive losses from the profit you earn when you sell your rental property. To take this deduction, you must sell "substantially all" of your rental activity. Other rules also apply; you must sell the property to an unrelated party, sale must be a taxable event, and others.
Feel free to contact us directly for more information. No obligation.
It's not what you make, It's what you keep that determines your lifestyle