Form 4562 Line 22 not matching 1040 Schedule E Line 18

You might not be able to take the loss this year based on your income.

If that is the case, the loss will be carried over. 

 

“Passive loss limitations are based on your adjusted gross income (AGI). If it is less than $100,000, you can claim up to $25,000 of losses reported on line 26 of your Schedule E. If you make between $100,000 and $150,000, the loss amount starts phasing out. If you make over $150,000, the loss on line 26 cannot be claimed.

For those with an AGI over $150,000, not being able to claim your passive loss might sound like heresy. But before you write a letter to Congress in protest, the loss is not actually lost. It is reported on IRS Form 8582 and carried forward.

In summary, Schedule E is for income or losses that are not generated from business operations. Schedule E income is considered passive. The result of Schedule E eventually finds its way to line 17 of your IRS Form 1040. If it isn’t there, you may have run into the passive activity loss limit.”

The college investor

 

Hi KrisD15,

 

Thanks for the explanation. Turbotax did not generate Form 8582 for me. What's the eligibility of filing Form 8582? Also in my case, on my  1040 Schedule E Line 22, the rental real estate loss after limitation is $0. 

Did you enter any personal-use days?

 

If so, was it 100% personal then converted to 100% rental (or vice versa)?  Or was it back-and-forth between personal and rental use?

It was 100% personal use then converted to 100% rental. I entered 110 days for personal use.

You need to enter ZERO personal days.

 

If you re-read that screen carefully, it tells you to only enter the personal days AFTER it was converted to a rental.

Form 4562 Line 22 probably isn't the same as Schedule E Line 18 because Line 22 includes depreciation that is allocable to a different part of the return. Possibly, the difference may be found on Schedule C line 13?