ThomasM125
Expert Alumni

Self employed

When you enter your rental activity, edit your rental Property Profile and you will come to a page that says Do Any of These Situations Apply to This Property? and one of the options is I have passive activity real estate losses carried over from a prior year. Choose that option and you can enter your passive loss carryovers from the previous year if they aren't already listed.

 

You will see the carryover losses entered on line 22 of your schedule E. However, they will only show if you have a net income from your rental activity in the current year. Otherwise, they get carried over to the next year.

 

 

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