Thank you, @Mike9241. Appreciate you replying.
A few things to clarify:
- I am not sure why you thought I might take the writeoff in 2023...the bankruptcy wasn't until 2024 and point #3 in the intro is titled "How do I enter the investment loss on my upcoming 2024 return..."
- You said: "NO the losses reported are what they are. The question you'll have to follow up on is whether you deducted those passive losses when you shouldn't have. SEE BELOW". Hmmm this statement doesn't make sense to me. I already said I did NOT check the box in 2021 and 2022 stating “I have passive activity losses carried over from last year". So, I couldn't have deducted them. Also, I wouldn't have anyway as they are passive activity losses and I do not have passive income to offset them against. I would only deduct them when I completely dispose of the passive activity, so 2024 in my case, since that is when the bankruptcy occurred. I was just asking if I need to go back and record my passive losses since I did not originally and therefore, they were not carried over. I was trying to see if I could not do the amendments and just take the full $60K writeoff in 2024. Probably not.
- You say to look at form 8582 to see if it shows a passive loss carryover - I cannot do that because I have to amend the returns 1st since I did not record them originally. There are absolutely passive loss carryovers. The ones I mentioned in the intro paragraph. Those are the losses I would enter on the 2021 & 2022 amendments, if I needed to amend them, which is what I was asking.
- Can you relook at question # 2? Your answers is based off me writing off the investment in 2023, which I am not doing until 2024.
With these clarifications, I imagine most of your responses might be different. Appreciate your efforts.
