Does TurboTax handle the PAL and tracking from previous years (done with TurboTax)?
For the most part, yes. But you should still check and confirm. Any PAL carry overs will be on IRS Form 8582.
With the tax law changes in 2018, if you qualify (and a fair number do qualify) then up to a maximum of $25K of the excess passive losses can be deducted from other ordinary income. So it's possible for one to not have carry over losses. It just depends on the numbers.
I know for me I had PAL carry overs until around 2019 or 2020. Starting in 2018 I was able to deduct an additional $25K against other ordinary income, because I met the requirements to do so each year. I think 2020 was the last year I had carry overs, and they were all used up against other ordinary income. Since then, I've not had any PAL carry overs to deal with. But with rising property taxes and insurance, that could easily change in the future.
