It depends. Passive losses can be unallowed losses under certain circumstances, such as losses are in excess of Schedule E Rental Losses allowed for a particular taxpayer's income level.
Unallowed losses can be a variety of other types of losses. An example might be losses in excess of the basis in a partnership.
If you are trying to enter passive loss carryovers from a prior year rental property, follow these steps:
- Click the Federal Taxes tab
- Click Wages & Income
- Scroll down to the Rental Properties and Royalties
- Click Start (or Revisit/Edit) next to Rental Properties and Royalties (Sch E)
- Choose the property for which you need to add the Carryovers.
- Click the blue Edit button next to the rental you'd like to add info for
- Click Continue until you reach the screen entitled Do any of these situations apply to this property?
- Scroll to the check the box next to I have passive activity real estate losses carried over from a prior year.
- Click Continue
- You'll be able to input the carryover amounts in this section.
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