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Level 1
posted Feb 19, 2024 7:11:14 AM

Residential Real Estate Rental Loss Carryover didn't transfer into my return - how do I enter it manually?

Residential Real Estate Rental Loss Carryover.  I have two residential real estate properties that I rent out.  One consistently generates a positive taxable income and the other a negative tax loss.  In the past, when the two properties combined resulted in a net tax loss I was able to carry that loss forward to the next year and TurboTax automatically brought it into my return.  While doing my 2023 taxes, last years tax loss carryforward did not come over into my 2023 return (TurboTax Premier) and I haven’t been able to figure out how to do it manually.  What do I need to do or has there been a tax law change?

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1 Best answer
Expert Alumni
Feb 19, 2024 8:10:55 AM

No, there has not been a law change.  Follow the instruction below to include your passive activity carryover loss on your 2023 tax return.

 

You must go into the rental property income section first, then follow the steps to enter your carryover loss.

  1. Any passive activity loss (PAL) carryforwards allowed would be listed on your Form 8582, Worksheet 5 or 6, in your 2022 tax return as 'unallowed loss'.  If you have a PAL and it does not seem to be populated in your 2023 tax return you can take the following steps to enter it.
    • Use the magnifying glass to Search (upper right) > Type rentals > Jump to Rentals > Select Edit beside your Rental Activity  > Under Less Common Situations > Review Carryovers, limitations, at risk info, etc. > Continue to enter your passive loss carryover.  See the image below for assistance.

1 Replies
Expert Alumni
Feb 19, 2024 8:10:55 AM

No, there has not been a law change.  Follow the instruction below to include your passive activity carryover loss on your 2023 tax return.

 

You must go into the rental property income section first, then follow the steps to enter your carryover loss.

  1. Any passive activity loss (PAL) carryforwards allowed would be listed on your Form 8582, Worksheet 5 or 6, in your 2022 tax return as 'unallowed loss'.  If you have a PAL and it does not seem to be populated in your 2023 tax return you can take the following steps to enter it.
    • Use the magnifying glass to Search (upper right) > Type rentals > Jump to Rentals > Select Edit beside your Rental Activity  > Under Less Common Situations > Review Carryovers, limitations, at risk info, etc. > Continue to enter your passive loss carryover.  See the image below for assistance.