MarilynG1
Expert Alumni

Investors & landlords

@cindykevinkane Since you didn't rent in 2019 or 2020, you may want to Amend your 2019 Return to indicate that 'you stopped using the property for business' in the Rental Info that carried over from 2018. 

 

Since you didn't report any Rental Income/Expenses in 2020, you won't be able to enter your passive loss carryover.  It can only be applied when you have rental activity or when you sell the Rental Property.

 

If you sold the property in 2020, you can add the Rental Property back into your return and enter the sale info and Passive Loss Carryover amount. 

 

Click this link for info on How to Report Sale of Rental Property

 

If you didn't sell the property in 2020, keep the amounts of your PAL and Prior Depreciation (form 4562) from the last year you had rental activity handy for when you do sell the property.

 

Click this link for more info on Selling Rental Real Estate at a Loss

 

 

 

 

 

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