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Yes. If you have passive losses, from Schedule E, they carryover to the following year.
Passive Activity Losses (PALs) not allowed in the current year are carried forward until they’re allowed either against passive activity income; against the special allowance, if applicable; or when you sell or exchange your entire interest in the activity in a fully taxable transaction to an unrelated party.
- For more information, see Pub. 925, Passive Activity and At-Risk Rules.
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March 8, 2021
5:22 AM