Passive loss final year
 

I have a small amount of passive loss carryovers from prior years (rental property, k1 line 2. I filed the 1065 as final. No gain or loss due capital transferred equals my basis. I rented my 2nd home and set up LLC for liability purposes. Anyhow, due to depreciation deduction, created unusable passive loss each year. Now doing my individual return, it’s adamant that I get a deduction for the current year loss even though passive and it gives me a deduction for prior year passive losses. Does it sound like I just entered something wrong or could it be related to 2017 jobs act? Started LLC in 2022z
Thanks.

I think I found my answer. Not deductible since sold to related party. Thanks

I’m not certain you have that right. Loss on sale is not the same thing as passive loss on operations. Generally when a rental property is sold any carry over losses are released. Not sure I’ve run into that on a 1065 but have on sch e.