KrisD15
Expert Alumni

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The passive loss is your carry-over, not a carry-over of that particular rental. 

 

According to the Tax Advisor:

"(Sec. 469(b)). A taxpayer can apply suspended losses against passive activity income from any source, not just from the activity that created the loss."

 

Additionally according to the IRS:

“DISPOSITIONS: If there is an overall loss after considering current and suspended losses against gain on disposition, the loss is non-passive. See IRC § 469(g). Thus, it enters into the modified AGI computation, and will reduce income, just as another nonpassive loss would. Stated differently, both the income and the losses enter into the MAGI computation.”

 

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