Rental expenses exceeds income

Long horrible story cut short. 2017 my expenses for rental A exceeded the rent I received for the same time frame and I had a net loss of $1441. Rental B had a net loss of $31,633. Can I use this loss for 2018? I'm having to amend my 2018 return and want to make sure I'm getting this right.

posted

You can carry forward disallowed passive losses to the next taxable year (in this case, to 2018).

See https://www.irs.gov/taxtopics/tc425

You can deduct passive losses from passive income and you may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity.

Further, for rental property there is a $25,000 special allowance whereby you can deduct up to that amount of loss from other (nonpassive income), subject to a phaseout rule.

See https://www.irs.gov/publications/p925#en_US_2018_publink1000104571