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Investors & landlords
You used the full loss in 2019. In the year of disposition or sale the full carryover of passive losses and current year loss (if any) are allowed to be used against other income. There is no carryover of any passive losses after that year. If, as indicated, this created a net operating loss (NOL) in 2019, then you may have a loss to carry forward to your 2020 tax return.
In your 2019 tax return there will be a worksheet showing your NOL carryforward. If you are unable to locate that you can use the worksheets.
They can be found in IRS Publication 536.
Once you determine the correct amount, you can include the carryover in your 2020 tax return by following the steps above, placed here for your convenience.
- Do a Search (upper right) > Type net operating loss > Press enter
- Click on the Jump to result
- Enter your NOL carryforward on the screen that appears
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March 28, 2021
7:37 AM