I have passive activity losses from prior years on schedule 8582 but they are shown as unallowed losses. Where do i show this on this years tax forms? Reg Tx Carryover?

[ntheath2004]

Hey @ThomasM125  Follow up question - for amending my 2020 taxes, do I simply need to add form 8582 OR do I also need to re-add my rental property as an income source but with no rental income (and thereby generated the passive loss carryover into form 8582)?

[AmeliesUncle]

As I mentioned before, you can't do it correctly with TurboTax.

TurboTax can only include 8582 if you add the rental property (it is wrong to report a rental property that does not exist as a rental property).

Or else it does not file 8582 (which is wrong).

[ntheath2004]

Hey @AmeliesUncle ,

I thought it is possible to include 8582 in the standalone version of TT? 

So it sounds like what I need to do is amend with he 8582 form only, not include the rental property again since, I agree, it was not a rental property in 2020.

thanks,

[ntheath2004]

Hey @DianeW777 

I figured out how to download the TT 2020 Amend program as well as my 2020 .tax file so I could update on the desktop. However I am running into the same issue another poster mentioned, that is when I add the 8582 forms manually, I cannot edit them. There is a blue box which does not allow me to update the contents to match my previous return. Do you know how to edit the fields on the forms?

[AmeliesUncle]

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@ntheath2004 wrote:

I thought it is possible to include 8582 in the standalone version of TT? 

Do you know how to edit the fields on the forms?

---

No, not without some passive activity.  And merely adding the forms manually will not actually file them.

You can't, the program won't let you.

[ntheath2004]

Hey @AmeliesUncle 

I'm learning that now :(.

So how are you supposed to apply PAL against the income of a sale then if you can't include the 8582 forms to show you have PAL in the first place?

thanks,

[AmeliesUncle]

The correct way to do it would be to use different software that is capable of doing it correctly.

As a work-around, you could enter a mock rental property that shows the carryover, and say you disposed/sold that rental.  But will incorrectly include a (mostly blank) Schedule E as a rental.

Another option is to enter it as a negative amount of "other income".  But has potential problems and drawbacks as well.

But again, TurboTax is rather negligent for not being able to do things as it should be done, so you may consider other tax software that may be able to do it correctly. 

[ntheath2004]

Hey @AmeliesUncle ,

Thanks for the input and suggestions! I agree, its disappointing that TT cannot handle this situation, seems like a not overly complicate situation they should cover.

thanks,

[toofan1]

Which line  or column of form 8582 shows the Passive loss carryover to next year? 

[Critter-3]

Read the form and/or the instructions ... part VII column C

https://www.irs.gov/forms-pubs/about-form-8582