Yes, you can remove this entry.
- Return to the rental property where you entered the prior year losses.
- Edit the property information and look for a page "Do Any of These Situations Apply?" or a "situations" topic.
- Under Carryovers on this page, there are boxes to check for passive activity losses carried over from a prior year.
- If this box is checked, continue through the interview and remove the entries you made for passive losses from prior years. Continue to the end.
- Now go back to the situations page and uncheck the box for passive activity losses.
- Continue back to the rental summary page to save your changes.
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