sale of a rental property at a loss

Technical topics regarding tax preparation.
#1
zl28  
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Taxpayer has a 5k loss on a rental property in 2020.

He makes 200k.

So normally he can't take the loss as an active participant who is not a re professional.

He however, sells the property in 2020.

Can he take the loss just by virtue of selling the passive property or
does he actually need a profit from the sale that exceeds the 5k loss from rental operations
to utilitze the 5k loss.
 

#2
JR1  
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Western 'burbs of Chicago
When it's sold, unless it's stuck into an S corp or Master LLC....he can claim all the suspended losses...
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#3
sjrcpa  
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Maryland
The loss is fully deductible, regardless of income, if the property is disposed of in a fully taxable transaction.
 

#4
mariaku  
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11-Jul-2014 1:19pm
Location:
Oakland, CA
unless it's grouped with other rental properties that aren't sold
 


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