We've had a short-term rental property the last few years. We've been able to take the passive losses on it using the "Special Allowance for Rental Real Estate" on Form 8582. However, we have a carry-over of about $5000 of disallowed losses (because they exceeded the $25,000 cap).
This year we are converting the property to x second home. We have not rented it at all during 2024, so Turbotax wants to delete Schedule E - which makes sense. But it's also deleting Form 8582, and therefore not allowing us to take that $5000 loss this year. (If I search for 8582 and open it, it is blank).
Is this an error in Turbotax and is there some workaround, or am I mistaken that we're able to take that passive loss this year ?
