Yes, because you have taken the rental property out of service, Form 8582 will not contain any new entries of information. Because you have disposed of the rental property, you begin the process of entering this disposition in the Rental Properties and Royalties section of TurboTax. To find this section in TurboTax CD/download, select the Business tab, then Business Income and Expenses. Scroll down the screen and select Rental Properties and Royalties (Sch E).
When you get to the screen Review Your [name of rental property] Rental Summary, select Property Profile. At the screen, Do Any of These Situations Apply to this Property, select the options that relate to the sale of your rental property as well as those options that relate to carryover losses. Continue through the application, and you should see the screen, Passive Losses From Prior Years where you can enter your suspended losses.
If you are using TurboTax online, the process is similar. Here are the steps to follow:
- You access Rental Properties and Royalties after selecting Wages & Income (left margin).
- At the rental summary screen, select Edit across from Rental property info (near the top of the screen).
- At the screen, Review your rental property info, select Edit under Situations in the General info section.
- The next screen, Tell us about your situation this year, is where you can begin the process of entering information about the disposition or your rental property.
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