DianeW
Expert Alumni

Investors & landlords

@leslei99 Of course! The unallowed losses are always carried over until there is enough income to use it up or the properties are disposed of.  The purpose of doing the amendments is that if you want to use the unallowed losses in the year of disposition then you have to have the record carried forward every year  so that the IRS can see the losses.  They will place the burden on you for not reporting it and may likely disallow it in any current or future year unless  it's corrected on the amendments and carried forward.
If you think that you will have properties sold in two different years, that means you will want to consider doing a regrouping or wait to use the unallowed losses when the last rental is sold. You can regroup the rentals on the 2017 return by using a statement starting on page 9 of the publication. You would mail your return to include the statement with the return. I hope this helps answer the most important questions for you.