My wife and I sold our business and retired in 2023. We previously had a CPA firm file our taxes but are using TurboTax this year. Our 2024 income was significantly less than it had been for the past 20 years. We own rental properties that had accumulated $30K in prior unallowed losses and $25K of those losses became deductible this year on form 8582. Significant medical bills resulted in larger itemized deductions so the $25K deduction from form 8582 reduced our taxable income to less than zero (entered as zero on line 15 of form 1040-SR). On form 8582, can we deduct less than the $25K that is allowed for prior unallowed losses so our taxable income calculation would be exactly zero (instead of less than zero) and allow more of the previously unallowed losses to roll into next year? If so, how can we reduce the form 8582 deduction in TurboTax?
