I have carried forward my 2023 return into my 2024 return which I have not yet filed. If I amend my 2023 return, how do I change the carry forward info in my '24 return?

[DianeW777 · Accepted solution]

It depends on what the amendment was for.  If you have any carryforwards of capital losses or passive losses, or something that would directly affect your tax or income, you can adjust this information in your 2024 tax return.

• How do I enter my capital loss carryover?

If the amended figures were for something that only affected the 2023 tax return, then there's no need for concern.

Please update with additional details if you need further assistance and we will help.

[davidsilverman2-]

Diane, thanks so much for responding.  Here's the issue:  I had PALs (passive activity losses) in 2023 that carried over to my 2024 return.  I now realize that one of those losses was a "final transaction" meaning I could have taken the losses on my 2023 return, in which case I would not have had any PALs carried forward this year.  I have not yet amended my 2023 return because I am going to have more "final transaction" passive activity losses this year (2024) that will more than cover the losses carried forward from 2023.  So my question is whether to amend the 2023 return to claim the losses I could have claimed last year or should I just let those losses carry over because my 2024 losses will cover them and more?  Would the end result be the same either way?  And if I do amend my 2023 return, how do I fix that in my 2024 return which includes the PALs from 2023?  Thanks again!

[ThomasM125 · Accepted solution]

If you disposed of an activity in 2023, you need to recognize the associated passive losses in that year. So, you need to amend the 2023 return in that case.

When you enter your rental activity in 2024, you will see a screen that says Do Any of These Situations Apply to This Property? and you will check the box to indicate you have carryovers:

On the next screen you will see Passive Losses From Prior Years, on which you can enter the correct carryover losses:

[davidsilverman2-]

Thomas, thank you so much for your helpful reply.  When I amend my 2023 return to account for the disposal of that passive rental property, it will more than cover the other PALs, which were carried forward to my 2024 return.  So I guess I will have to manually override those PALs in my 2024 return to zero them out.  Right?

[RobertB4444]

Since they have already carried over then you will need to do something to remove the property from your 2024 return.  Since I assume that starting the 2024 return over isn't an option then I would suggest deleting the property in question entirely and saying it was disposed of in 2023.  That should keep the PAL from that property from appearing in 2024.

@davidsilverman2- 

[davidsilverman2-]

Robert thanks for your response.  The PAL carry forward appears on Form 8582.  I was just going to delete that form my return.  Would that work?

[RobertB4444]

Form 8582 is also used to carry PAL into the future.  I don't think that deleting the form from your return is a good idea if you can avoid it.  

@davidsilverman2- 

[davidsilverman2-]

But if I delete Form 8582 because none of the carry-forward data from 2023 is applicable any more (after amending my 2023 return), wouldn't any new (2024) carry-forward PALs create a new Form 8582 in TurboTax?

[AmyC]

Yes, it would. The program will hold on to information it deems critical. You may need to go into the form and delete the information in order to delete the form. The program will create a new one when needed.