1) What was the rental loss for 2019? EXTRA HINT, do not forget depreciation. 2) What was...
Question:
1) What was the rental loss for 2019? EXTRA HINT, do not forget depreciation.
2) What was the 2019 depreciation amount?
3) To what year may the loss first be carried back, under the new law?
4) If loss not exhausted in the first carryback year, what happens to the loss?
The client bought a condo in Florida on 9/27/2005 while he lived in NYC. He lived in the house as a primary residence until December 31, 2018, when he moved into a new Florida condo and listed the first house for sale or rental as of December 31, 2018. He gave up his NYC rental residence on January 1, 2007 and became a full-time Florida resident. He is retired as of January 1, 2018. He never received any rental income.
Primary facts:
The old residence purchase price was $1,300,000, closing costs on purchase (legal transfer, taxes, etc.) were $45,608.
Improvements were $855,039.
Property was sold 1/15/20 for $1,637,000, closing costs were $89,008.
Condo costs for 2019 were: RE Tax 11,319, Mortgage interest 58,393, maintenance was $30,408, utilities $1800, insurance was 7713.
The property was vacant for all of 2019.
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young