I think I know this one but just checking.
Assume AGI is above limit for deducting passive losses.
2012: Gross income $10,000, expenses $5,000, depreciation $6000 2013: Gross income $10,000, expenses $3,900, depreciation $60002012, no loss allowed although loss after depreciation was $1000.
2013, $100 income reported, although $1100 is actual loss, you can deduct the undeducted depreciation from 2012.Thanks.
undeducted depreciation from 2012.
$1000 loss is carried forward from 2012.
2013 is confusing. "Although $1100 is actual loss." Looks like 2013 had a stand-alone gain of $100 ($10,000 - 3900 - 6000). The $1000 loss carried will negate $100, and remaining $900 carries forward unless your AGI is under the limit.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.