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Investors & landlords
These amounts are from prior year losses for your rental property. These are suspended passive losses that are carried forward until you are able to use them against rental income or other passive income.
A passive loss carryover is created when you have more expenses than income (a loss) from passive activities in a prior year that could not be used that year. Instead, the passive loss is carried forward to future tax years to offset any passive income. The loss continues to be carried over until you use up the entire amount.
Passive Loss Carryovers can be created by any passive activity. Most come from rental properties (Schedule E). If you used TurboTax to file your tax return last year, any Passive Loss Carryovers would appear on Schedule E Wks - Carryforward to 2016 Smart Worksheet .
If you had more than one property, or you didn't use TurboTax last year, Passive Loss Carryover appears on Form 8582 Page 2 Worksheet 5 (screenshot #2). For AMT, look for the same form with "ALT MIN TAX" under the form title.
Please see this from the IRS for more information.
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