Tax questions on rental property sales and carryover losses?
Asked by: jbell
I own two rental properties. Property A and Property B combined over the last three years have built up $ 9,000 in carryover losses (primarily from depreciation). I sold Property A in 2012. Can I deduct the entire $ 9,000 in carryover losses against the net price of the sale when calculating the gain? Or do I have to divide the $ 9,000 by the total number of properties (in this case, two)? Or is there another required method?
Also, as far as the gain from the sale is concerned, is that considered part of passive rental income or is it a capital gain like selling stock?
How others found here:
- rental loss carryover
- Passive Loss Carryover Rental Property
- calculator gain on sale of rental home with passive loss carryforwards