The prior years suspended losses were used when the related property was sold in 2020. I have no other losses to be carried to 2021.
My MAGI is in excess of the amount that can be used for the $25,000 special loss allowance so the allowance is phased out and cannot be used. Therefore the vacation rental loss should not be allowed. I am an active participant in this rental but do not materially participate.
I believe IRC Section 280 says that I cannot take a loss for this activity but the limited expenses are carried forward and suspended until I dispose of the property. That was my experience when I had the former property and TT carried the loss forward until I sold the property. The Family and Business program for my desktop does not limit the loss, instead says it is a NPA and reduces my income by the $8,000 loss which I believe is in error.
