DianeW777
Expert Alumni

Investors & landlords

That's correct if you did NOT sell the property yet. If you rental is reported on Schedule E, then TurboTax does know that the activity is passive and will suspend the loss with Form 8582.  Double check your assets to be sure you did not select that they were removed or disposed of. Also check your property general info to be sure you have not selected that you were a real estate professional.

 

There is no suspension in the year of disposition.  The full loss is allowed to be used against all other income when the rental activity is sold or disposed of.  The carryover is done in the year of sale.

 

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