@stanley1231 wrote:
In this case, does mean the $10,000 loss is wasted?
If we do not plan to rent A out again, anything we can do to use that loss in future?
No, it means that TurboTax is faulty and does not continue to carry it forward.
That loss can still be used against any Passive Income. Or if/when the property is sold in a "fully taxable transaction", it can be used then.
As for what to do because of TurboTax's faultiness, it depends. Because you have another rental, you may consider continuing to report that as a rental property (with no income and no expenses), just so you can continue to report the Passive Loss Carryover. Your tax return will incorrectly show it as a rental, but the end result shouldn't be problematic.
