PAL explained:
Look at form 8582, page 2, part VII. You see a line item there. The first column shows name of activity and the second column shows form or schedule.
If you have first column, second column, last column:
- Rental, schedule E, unallowed loss - put that number in your Sch E regular tax carryover box
- Rental, Form 6251 (the AMT form), unallowed loss - that would be the AMT number to use.
- Rental, Form 8995, unallowed loss - that is the number for QBI carryover
You may not have any or all of these lines. You may not have any carryover. If you form is blank like the one shown here, there is nothing to enter.
As you can see, PAL include Sch E, AMT, and QBI.
- Your unallowed Sch E loss is added to the basis when you sell. You can call that part of PAL or just Sch E unallowed loss.
- When you sell, you will be asked about AMT basis. Since you are higher income, you may have different numbers to use and will need to look at the AMT part of PAL - your 6251 from last year.
- Finally, QBI income or loss is carried over to compute this year's QBI.
Reference: About Form 8582, Passive Activity Loss Limitations
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
