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Boburk
Level 2

Rental Property loss carryover

Kind of a two part question.

I am using TurboTax (TT) Premier, which I have used for at last three years (2020 and the prior two years).

I have rental properties which I have had for four or five years (started with one, have three now)...this will be the first year I show a profit, but I have never claimed the prior year's losses on my taxes in the past.  Real estate is NOT my primary occupation...its kind of a second job...

When I select that I had a carryover passive loss from last year, TT asks for the numbers off my schedule E (any research I do refers to figures off a form 8582...which I do not have <have used TT for years>).  Line 22 of schedule E shows my losses and refers to form 8582 as the source of the figure, but again, the 8582 is NOT part of my 2019 taxes.

So, first question: Is line 22 on schedule E of my 2019 taxes the number I use for my passive loss carryover on my rental property when I fill out taxes for 2020?

Second part of my question...TT has three locations to enter carryover loss figures when you tell it you have a passive loss carryover.  They are: "regular tax carryovers," "AMT carryovers," and "QBI carryovers."  Looking through the TT application and following its guidance, looks like I have claimed my rental property as a QBI. With this said, I have also researched (google) and found where someone said to claim it under "Regular tax carryover" (might have just been relative to their situation, not mine).   So...if line 22 of schedule E from my 2019 taxes is the figure I am supposed to use as a passive loss carryover on my 2020 taxes, do I claim it as regular tax carryover in TT, or do I claim it as QBI carryovers?  I take it QBI, but trying to verify.

Thanks

3 Replies
ThomasM125
Expert Alumni

Rental Property loss carryover

On schedule E, line 22 would be the passive loss allowable for the current year, so it wouldn't be the carryover loss for the next year. The carryover loss would be the total of losses for all of the years less the losses that were deducted.

 

For the loss carryovers, normally you would enter the same amount for each entry, Regular Tax Carryover, AMT Carryover and QBI Carryover, unless you knew otherwise.

 

 

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Boburk
Level 2

Rental Property loss carryover

Line 22 on schedule E appears to be the difference between my earnings and my costs last year...it's a negative number.  this is in relation to my investment property, so it's passive income and passive loss.

 

Because this is a passive loss, my understanding is that it can only be applied to a passive income. So since it's a negative number, it is already been applied to all of my passive earnings, and the negative number is what's left over (not being able to apply it to my income from other sources).

 

Is this not correct?

JeffreyR77
Expert Alumni

Rental Property loss carryover

That should be correct.

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