Carl
Level 15

Investors & landlords

If you told the program that you are renting below fair market rental value (most common when renting to family) then your deductible expenses are limited to the amount of rental income received, and carry over losses are not allowed. Any carry overs are just lost, permanently. This would include carry overs from previous years too.

So work it back through and confirm you answered the questions correctly concerning renting to family, and renting at FMRV. Additionally, if a vacation rental where you only rented out for a single short period during the year, the same may apply to that scenario also, depending on the specifics.