Thank you, @marctu . Yes, I understand you are saying to carry forward from the prior years per Form 8582, but my question is how to know if you have a passive activity loss to begin with - where would this be listed or how is that defined? My information on 2021 tax return is only as correct as the data input and that is my concern. Allow me to clarify:
- 2019: July 2019, I invested $60K in a business.
- 2020: First year to receive a K-1. Per K-1, business losses of ($6727). Per supplemental "Allocation of Losses and Deductions" included with K-1, "Allocable Losses & Deduction in Current Year" in column e are listed as ($6727). My 2020 has return has worksheet 8582 and "Part I 2020 Passive Activity Loss" Line 4 has the ($6727) loss listed and then on "Part IV Total Losses Allowed" it says $0 on Line 16. At the end of Form 8582 under "Worksheet 7 column e" the Total is ultimately $0.
- 2021: Follows exact same format as 2020, but with 2021 losses of ($6506). Tax return includes form 8582 and worksheet ultimately shows Total Losses Allowed $0.
- 2022: Follows exact same format as 2021, but with 2021 losses of ($2884). Tax return includes form 8582 and worksheet ultimately shows Total Losses Allowed $0.
Is this where the passive activity losses would be listed - per 2021 & 2022 Form 8582 "Part VIII Allowed Losses (c) Allowed Losses" (at the end of the form)?
Additionally, why are these losses not "an allowable passive activity loss"?
