Removal of carryforward losses due to step up in basis

Forum|Forum|1 day ago
August 14, 2026
1 reply
12 views

Facts:

Jointly owned rental property and the spouse dies 1/5/2025

As of 12/31/2024, there is a carryforward loss of $23,100 for the rental property and the step up in basis is greater than the carryforward loss so therefore, the carryforward loss is eliminated per my understanding of the IRC.

The rental property has a new depreciable basis and a new start date (1/5/2025).

Question:

Is there a special way within the tax software (ProSeries Basic) to eliminate the carryforward loss or do I just zero it out by eliminating the asset in the software and starting a new asset?

ProSeries Basic

T

Terry53029

Intuit Community Champion

The amount of carryforward loss greater than step up in basis is lost, and could be all or part of the carryforward loss. On the old asset sheet put date of death under sold asset, and leave rest blank. Make a new asset using the new basis. On the final joint return on the 8582 if all the amount of carryforward is lost you will have to override the amount to zero, and make note as lost due to step up basis greater than loss

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