CA resident is selling their rental property in MA.
Can they offset the MA capital gain income tax with their freed up suspended passive losses on that same rental? Or are those losses flushed down the toilet?
A taxpayer who disposes of the taxpayer's entire interest in the activity in a fully taxable transaction to an unrelated party may at the time of disposition claim any unused suspended deductions in full.
Wiles wrote:Thanks for checking Nightsnorkeler. I am getting a bad feeling about this.
I wonder if I can use the tax benefit rule and exclude the accumulated depreciation from the gain on the sale...
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