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Investors & landlords
if you used Turbotax or even other self-prepare apps, those suspended passive losses should already be reflected as carryovers on the schedule E worksheets and can be found on form 8582. at such time as income is increased some of those suspended losses will be applied to reduce the net rental income (not below zero unless the special rule applies). there is a special rule that allows up to $25,000 in passive rental losses each year provided your adjusted gross income is less than $150,000 and you actively participate. the computation for this limitation is also done on form 8582.
‎September 29, 2023
9:21 AM