Rental property carryover expenses

Mar 06, 2007 1 Replies

Two years ago, while owning a single-family residence (Property A), I purchased a property which I intended to use as a rental (Property B). I incurred extensive repair bills, but due to the $25,000 passive loss limitations, so far I've been able to deduct only 2/3 of those repair expenses. Last year, due to my employment situation, I decided to move into Property B and make it my primary residence. I also converted Property A into a rental. Since I would not be able to deduct any Property B carryover repair expenses -- Property B no longer qualifies as a rental -- would it be possible to deduct these carryover expenses under Property A? Thanks in advance for your answers. Roger



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I think the PAL only get released when you sell the property. ___________________________________

-----> real address on hobokeni or hobokenx

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