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Will past years turbo tax be modified to handle the changes to allow real estate losses, and if not how do I amend for the change?

 
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4 Replies
DMarkM1
Expert Alumni

Will past years turbo tax be modified to handle the changes to allow real estate losses, and if not how do I amend for the change?

Would you elaborate on what versions of TurboTax might not have handled rental real estate losses properly?  For passive losses zero offset of ordinary income with an exception for active participation which allows up to $25,000 of losses against ordinary income.  

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Will past years turbo tax be modified to handle the changes to allow real estate losses, and if not how do I amend for the change?

 The 2018 turbo tax rules vs recent Coronavirus rule change to allow loss not previously allowed high income filers.  Will 2018 premium TT be changed to now allow real estate loss to off set income for refiling 2018 amended return?  

jrherrman
Returning Member

Will past years turbo tax be modified to handle the changes to allow real estate losses, and if not how do I amend for the change?

How are current year loses for active participation of rental income handled within turbo tax?  

DMarkM1
Expert Alumni

Will past years turbo tax be modified to handle the changes to allow real estate losses, and if not how do I amend for the change?

Real estate rental losses to offset ordinary income for non-real estate professionals but with active participation are limited to $25,000 and that loss allowance is phased out at adjusted gross incomes between 100,000 and 150,000 per IRS instructions. 

 

Here is the current IRS Publication for reference.  

 

The CARES act suspended the excess business loss limitation but did not change the Passive Activity Loss rules.  

 

The excess business loss rule had limited business loss in tax years 2018-2025 to 250,000 (500,000 for joint filers) with the excess carried over to future years.  

 

 

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