We sold our only rental property during 2019. We were active participants and not real estate professionals. We have substantial passive losses accumulated from the past 10 years of owning the property that we have not been allowed to take previously due to the passive loss limitation rules. These prior years' losses are reflected on our 2018 Form 8582. The property was sold at a considerable loss.
We are trying to figure out where to input the prior years' unallowed losses in TurboTax. Specifically, should the prior years' losses be entered in the "Regular Tax Carryovers" box on the screen titled "At-Risk Losses From Prior Years" or in the "Regular Tax Carryovers" box on the screen titled "Passive Losses from Prior Years"? My understanding of that at-risk rules is that purchasing and renting a residential property would be considered an at-risk activity. Thank you!
