All Forum Posts by: Angie Jay

I invested in a syndication and on the Schedule K-1 Box 10 " section 1231" I have a loss. I am confused as to how to report this. Below are two thoughts I have, not sure which is correct. Would appreicate anyone can provide some assistance. 

1. The instruction stated it should go on form 4797, and the loss is subject to unallowable loss limit. Since I didn't participant, it would be passive loss, so it makes sense to me. However I also have a loss on box 2, do I report them both combined? or separately on form 8582? I can't seem to find any answer on this. 

2. I wen through entering form 4797, it didn't really refering it to Form 8582 and at the end of the form it's asking to enter it on Schedule 1. I feel like it's treating it as an active loss.

Hope I make sense here. First time doing this. 

@Nicholas Aiola ok. got it. Thanks. 

@Nicholas Aiola Thank you for the answer. Have another question regarding Schedule E if I may. 

I know you can't deduct RE loss when your income is over 150k and not a RE pro. But our Schedule E Line 26 has a negative number. It's asked to enter on sch 1 line 17, which to me means it will be deducted from other income. Was it a mistake on Sche E? or The amt on Sche E line 26 should be ignored and put ZERO on sch1 instead.  I am bit confused. thanks

@Nicholas Aiola Thank you answering the question. How about if it's treated as a flip? What form is needed if it's treated as a flip? Thanks again. 

@Nicholas Aiola I understand, It's very close to the deadline.

Can you tell me what form is needed if it's treated as Rental sale? Thanks 

@Basit Siddiqi thank you for the clarification.  Will need to get 2017 tax fixed! 

for 2018, if we want to treat it  as rental since we are not flipper, What form do we need to file to claim the loss? 

I was told if we use schedule D ( that's if we treated as flip, right?), we can only deduct 3k loss. thanks

@Nicholas Aiola

Thanks for your response. sounded like I need to get 2017 tax fixed. If it's treated as a rental, What would be the correct form to use for 2018?  

Would be happy to discuss more over the phone if you have some time to spare. 

thanks

@Michael Plaks Thanks for your response. 

In 2017 it was treated as capital improve and was depreciated.  But seems like even with the intention of rental property, it still should not have been on  it? is that right? 

If we decided to treat it as a rental, what form would we need. 

Would I be able to discuss more with you over the phone in detail? 

Hello, first want to thank you for taking the time to answer people's question. I posted my question before seeing this thread, not sure if you will see that. but I would like your opinion on my questions. 

In 2017 bought a rundown house with the intention to fix then maybe flip or rent depends. ( Filed the property on schedule E, treated the same as other rentals), However had a lot of issues with contractor, long story short, Sold the house in 2018 ( Less than a year) at a loss just to get rid of the headache. It was never rented and had no income if that matters?

Now filing for 2018 tax, first Question: should this house go on Schedule E again ( as if it's not sold) and all losses are deductible on Line 22? from what I read, since the property is sold, it doesn't go on Form 8582 and I can realize all loss from 2018 and 2017, 2018 loss can go on Schedule E, but where do I enter the loss from 2017? I don't think that's part of the base adjustment ( i know depreciation I took in 2017 needs to be adjusted)

I thought the sale should be filed on f4797 section II since it's <1yr? but told by an accountant it should go on schedule D since there is no income. Who's right?

Thanks again. 

Hello everyone, 

Have a Tax related question and looking for some clarification. It's the first time selling. and getting some different answers from accountant, so im confused as to what to do.  Here's the background

In 2017 bought a rundown house with the intention to fix then maybe flip or rent depends. ( Filed the property on schedule E, treated the same as other rentals), However had a lot of issues with contractor, long story short, Sold the house in 2018 ( Less than a year) at a loss just to get rid of the headache. It was never rented and had no income if that matters?

Now filing for 2018 tax, first Question: should this house go on Schedule E again ( as if it's not sold) and all losses are deductible on Line22? from what I read, since the property is sold, it doesn't go on Form 8582 and we can realize all loss from 2018 and 2017,  2018 loss can go on Schedule E, but where do I enter the loss from 2017? 

I thought the sale should be filed on f4797 section II since it's <1yr? but told by an accountant it should go on schedule D since there is no income. Who's right?

I am a bit confused and would really appreciate any inside. or any RE experienced CPA to talk to.

Thanks