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Old 03-29-2017, 12:56 PM
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2015 Rental Loss Carryover

We sold a house in 2015 that had been our primary residence and converted to a rental home in 2012. We had a loss of 48,000 on the property that was reported on our 2015 taxes on Form 1040 Line 14. We were under the impression that we should be able to carryover a portion of this loss to claim for our 2016 taxes, however, it is not pulling into our 2016 taxes when we load them. Our questions are the following:

1. Should we be able to carry over some of this loss?
2. Did we file incorrectly in 2015, meaning we should submit a correction for that tax year?
3. Did we file correctly and simply move forward with our 2016 taxes as-is?

Thanks!



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Old 03-29-2017, 04:45 PM
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1. Should we be able to carry over some of this loss?===>you mean the capital loss on the sale of the residence? Then no; Although normally a loss taken on the sale of personal property, including a house, is not tax-deductibleYou may deduct the loss on the sale of a house if you've converted it to investment property. That means making it a rental, for which you collect rent from a tenant and pay non-homestead property taxes. The IRS will not allow the deduction if you've simply offered the home for rent, or if you still live in it. By a general rule known as "two-year-old and cold," property you're renting out for at least two years is considered investment property.
;

2. Did we file incorrectly in 2015, meaning we should submit a correction for that tax year/ 3. Did we file correctly and simply move forward with our 2016 taxes as-is?=======>as mentioned above.



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