The IRS instructions for Form 8582 states the following for "Disposition of an Entire Interest":

If you have an overall gain, report the income, losses, and prior year unallowed losses on Part IV or V.

If I report the capital gain on Form 8582, the examples suggest that it should also be on Schedule E. If I also report the capital gain on Schedule D as suggested by the form 4797 instructions, then the same capital gain would be double counted in my income.

Is the implication that a disposition of a property that previously had suspended passive losses should ONLY be reported on (Form 8582, Form 4797, Schedule E) and NOT on Schedule D?

Or should it be reported instead on (Form 8582, Form 4797, Schedule D) and NOT schedule E?



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