No. The PAL is allowed only against passive income from your rental and will be used when your property is sold. It's very important to track all of your rental activity because you will need it when you sell if you hope to reduce gain.
I would advise to continue to add this to your tax return in the rental section until you sell the property. The information below will show you how to add it to your tax return each year.
- Open your TurboTax Online or TurboTax Desktop return and go to your rental property > Select Edit beside it and review the Property Profile.
- When you are on the screen 'Do any of these situations apply to this property?' (Property Profile section), be sure to check the box under Carryovers or the box beside 'I have passive activity real estate losses carried over from a prior year.'
@Ken20251
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