I have carryover passive losses on my rental property which I did not rent in 2021 while the house was being refurbished. In prior years when I rented the property, my AGI being low enough, TT automatically generated a Form 8582. The allowed loss on line 16 was entered on Schedule 1 and from there to line 8 of my 1040. There being no rental income in 2021 I followed the instruction of questionnaire and no Schedule E was generated, so no 8582, etc. I didn't notice this, because I had an AGI above the threshold for being able to use the passive loss against non-passive income.
My AGI for 2022 is back down well below that threshold, and I did not rent the property in 2022, as refurbishment continued. Can my passive loss carryover still be used to offset non-passive income for 2022 even though I didn't rent? Or is it only available when I am renting (or upon sale in a fully taxable transaction)?
Thank you.
