Form 8582 Again

[Carey50]

I am supposed to have a form 8582 flowing through from 2020 and 2021 taxes. It is not there. I do have a new form 8582 this year for a newly acquired K1 percentage. I was hoping I could add the form and fill out the information myself from the prior year. Don't know how to get the form. If I click on Open Form and type in 8582 it brings up the new 8582. How do I get a blank form?   

[ThomasM125 · Accepted solution]

You can only file one form 8582 with your tax return. Since your K-1 entry generated one, you will have to use that one to enter any carryover numbers from the previous year. Prior year loss carryovers are entered on line 1(c) and 2(c) in Part I of form 8582. Your loss carryovers from last year are listed in Part VII.

[Carey50]

Well that makes sense. Thank you so much!

[Carey50]

So I went in to add carryover numbers to the existing 8582. Unable to do any editing. Everything is grayed out except for last choice which goes to on demand tax guidance. Any thoughts?

[ThomasM125]

You will need to set up the prior year rental property and enter the carried over loss in the question and answer section. You will see an option to enter the prior-year loss carryover on the screen that says Do any of these situations apply to this property?:

[Carey50]

Actually it's not a real estate rental. It's equipment rental. The business was closed at the end of 2020.

[DianeW777]

Since this was a rental of equipment, and not a passive activity (Schedule E for real estate rentals), then all losses should have been included in the year the business ceased to exist/was closed.  It's unclear why you have a K1 for a business that closed in 2020.

Please update with more details and we can help you.

[Carey50]

 The business that closed (equipment rental) was a Schedule C business not a K1.

[ThomasM125]

Whether it was a passive or active rental business, once it was closed any unused losses would be allowed as a deduction in that year. So, any losses that were not deducted should have been deducted in 2020, so you would have to go back and amend that return to reflect that.

The only loss that could have been carried forward would be a net operating loss. That happens when your business losses are more than your personal income. That is not specific to the business so it is carried forward to offset personal income in future years.