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Old 09-18-2015, 01:38 PM
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Posts: 10
Unused rental property losses

Since 2005, I have had over 150k in income from a business that flows through to my personal return in a K1. In addition, I have a rental property.

My cost basis of my rental in 2005 was 250k

Every year my rental P&L was:

Income 12,000
Expenses 12,000
Depr 7,500

Net loss 7,500 that was disallowed due to my income level for 10 years

In 2015, my cost basis is now 175k (250-75) and my NOL carry forward is 75k (7,500x10)

If I sell this property in 2015 for 175k (FMV is 250k if that matters at all),

1). Is net gain/loss on sale $0 since my sale price of 175k = cost basis of 175k?

2). Do I have no depreciation recapture issues since there is no gain on sale?

3). What happens to my 75k NOL that has carry forwarded from 2005? Since I have no other rental properties to distribute the loss to do I finally get to use this NOL against my K1 business income?

4). Does the IRS care I am selling it 75k below FMV?

Thanks for your help

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