So to recap:
-Client did a 1031 exchange in 2018
-Client is a real estate professional
-Client had a suspended loss on the property
-I did the 1031 through Pro-Series instructions (zeroing out most assets and doing the 1031 forms)
Pro-Series is showing the suspended loss in 2019, and she is able to claim a portion of it. Is this correct? She doesn't own the property anymore. I figured we could just schedule a 0 income Schedule E and a portion would be deducted. Reading online, it looks like if she did a boot maybe she could have claimed this suspended loss.
Or, should I move the suspended loss to the new 1031 property?
The thing is that since she doesn't own the property anymore I don't know if it is allowed to file a zero income Schedule E.
a) Why is there a suspended passive loss if she is a real estate professional?
b) Since adjusted basis of old property becomes part of the basis of the new property, I would think the PAL c/o would "move" to the new property, too. I imagine 469 and/or its Regs address this.