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Investors & landlords
I'm a little confused by your reply, @DianeW777 . You did not specifically address the Special $25K Allowance (Pub 925, page 5) that I mentioned. I assume that you are saying that this Allowance is applicable only while I have an active rental property, and not after the rental property has been converted to personal use, right?
But in the second part of your reply you advise that I "continue to add this to your tax return" until I sell the property. If I add it to the tax return (by having a Schedule E for my property that has been converted to personal use but not sold), then TurboTax will generate a Form 8582, and then the PAL will be applied via the Special $25K Allowance if my income is low enough. So was the second part of your reply applicable only if I have another rental property?
BTW, I use TurboTax Desktop, and it had been carrying forward the PAL from year to year automatically, until I deleted the Schedule E when I converted the property to personal use in 2020.