Investors & landlords

Since you didn't rent the property during the year, it is correct to delete the property so a Schedule E is not generated. You need to note the passive loss carryover as you can deduct it in the year you dispose of the property or you incur passive income. In that year, you would re-enter the property into TurboTax and the passive loss carryover amount so you can generate a Schedule E on which the passive loss would be deducted. It is not clear in the instructions to Form 8582 if you need to include it with your return in a year that the passive loss is not being deducted, but there seems to be no prohibition against deducting a passive loss carryover from the previous year if the Form 8582 was not included with the return for that year.

[Edited 3/15/24 at 7:02 AM PST] @cwyn