I received income from the rental for 3 months. Sold in the 4th month and sold for loss of 23K. TT is deducting the entire loss against the $1050 instead of limiting it to the $3000 I thought I had to do. Confusing.

T

TaxGuyBill

Employee

Was it always a rental since you owned it, or was it originally your personal-use property and then you later converted it to a rental?

M

mfairchild066Author

Aleays a rental, never converted

M

mfairchild066Author

Always*

T

TaxGuyBillAnswer

Employee

TurboTax is doing it correctly. The full amount of loss is allowed, and is not limited to $3000 a year.

M

mfairchild066Author

So the difference (21k) can offset my nonpassive wage income? Sorry so many questions. Just seems like a huge wage reduction resulting in a huge refund. Dont have anymore properties so this wont happen again, just dont want to get wammied 5 years down the road! Thanks for all your help!