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1031 exchange with passive rental loss carryforward

Clyons
Level 1

My client did a 1031 exchange in 2020 with a rental that had a passive rental loss carryforward.  I understand that the car transfers to the new rental property.  Do the amounts need to be manually input in new asset?  If so, what happens to the carryforward amounts in relinquished property?

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3 Replies 3
sjrcpa
Level 15

Car?

Suspended passive losses go to the acquired property and stay suspended under the normal PAL rules.


ex-AllStar
George4Tacks
Level 15
"I understand that the car transfers to the new rental property." = I understand that they can transfer to the new rental property.

ex-AllStar
sjrcpa
Level 15

Oh. That makes sense. I saw car, you saw a typo.


ex-AllStar