Sometimes this happens. You can look at your Form 8582.
You can deduct prior passive losses that were not allowed when you sell the property that generated them.
TurboTax will calculate this transaction for you.
Tip: If your rental property is located out-of-state, make sure you first set up that state properly in Personal Info. That way, when you do your state taxes, we'll be ready to go.
Go into your TurboTax return. Not sure you're in there? Click on the orange Take me to my return button.
1. Search for rentals and then click the "Jump to" link in the search result.
2. Answer Yes to the question Did you have any rental or royalty income and expenses?
3. Follow the on-screen instructions as you proceed through the rental and royalties section.
o We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.)
o Eventually, you'll come to the Rental Summary screen which is where you enter your:
· Rental income
· Rental expenses
· Capital assets and depreciation
· Vehicle expenses
When you get to the screen "Do any of these situations apply to this property?", you can make the selection that applies to your situation by marking those that apply from the list available.
Check "I have passive activity real estate losses from a prior year." then continue and on next screen, enter the carryover and follow prompts from there.
If you are in the online version, scroll down to the bottom of the rental section and enter it under:
LESS COMMON SITUATIONS
Carryovers, limitations, at risk info, etc.
