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If I have 3 rentals on Schedule E and sell one for a capital gain that exceeds the suspended losses on all three, can I use the suspended losses of all three?

tomfattor
Level 1

This question relates to the phrase "complete disposition of an activity".Three rental properties are listed on Schedule E and reported separately.  Property A has a suspended loss (SP) of $20K, Property B's is $10K and Property C's is $10K.  Property A is sold, resulting in a $200K gain.  Can SPs for all 3 properties be used ($60K), or only the $20K, or none?

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taxiowa
Level 8
Level 8

All 3 suspended passive losses would be released if you sold Property A for a passive gain.  In this case the gain releases the losses not the fact the property was sold.  But you should check box H anyway.

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Just-Lisa-Now-
Level 15
Level 15
What happens when you check box H near the top of the Sch E worksheet of the one that sold?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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taxiowa
Level 8
Level 8

All 3 suspended passive losses would be released if you sold Property A for a passive gain.  In this case the gain releases the losses not the fact the property was sold.  But you should check box H anyway.

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