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Business & farm
Whether it was a passive or active rental business, once it was closed any unused losses would be allowed as a deduction in that year. So, any losses that were not deducted should have been deducted in 2020, so you would have to go back and amend that return to reflect that.
The only loss that could have been carried forward would be a net operating loss. That happens when your business losses are more than your personal income. That is not specific to the business so it is carried forward to offset personal income in future years.
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‎February 16, 2023
8:49 PM