At-Risk Losses from Prior Years vs. Passive Losses from Prior Years

[taddat]

We sold our only rental property during 2019.  We were active participants and not real estate professionals.  We have substantial passive losses accumulated from the past 10 years of owning the property that we have not been allowed to take previously due to the passive loss limitation rules.  These prior years' losses are reflected on our 2018 Form 8582.   The property was sold at a considerable loss.

We are trying to figure out where to input the prior years' unallowed losses in TurboTax.  Specifically, should the prior years' losses be entered in the "Regular Tax Carryovers" box on the screen titled "At-Risk Losses From Prior Years" or in the "Regular Tax Carryovers" box on the screen titled "Passive Losses from Prior Years"?  My understanding of that at-risk rules is that purchasing and renting a residential property would be considered an at-risk activity.  Thank you!

[AmeliesUncle]

Enter them as Passive Loss carryovers.  DON'T enter it as an At-Risk carryover.

[Anonymous_]

I agree with @AmeliesUncle but I am not sure how you arrived at the "At-Risk" screen unless you checked that particular box.

[taddat]

Thanks - I arrived at the prior years' at risk loss prompt after checking the box for "I have at-risk losses carried over from 2018."  I was not certain whether our prio years' losses were considered both passive and at-risk, or just passive.

I've looked into this further and understand from your comments that prior years' unallowed passive losses from our rental property should be input after checking only the box "I have passive activity real estate losses carried over from a prior year."

My remaining question is this: Which box(es) should I input the total of all prior years' un-allowed losses (from form 8582 on my 2018 return) into on the resulting screen?  There are three input boxes: "Regular Tax Carryovers (Sch E)," "Alternative Minimum Tax (AMT" Carryovers (Sch E)," and "QBI Carryovers."  If I only enter the prior years' loss total in the Regular Tax box, I get hit with a large AMT.  Should the same amount also be entered in the AMT Carryover and/or QBI Carryover boxes as well?

Thank you!

[Anonymous_]

You might want to look through the information at the link below but, for probably most (including yourself), the figures entered into that AMT box would be the same as the "regular" box.

https://turbotax.intuit.com/tax-tips/irs-tax-return/alternative-minimum-tax-common-questions/L50YotK...

[DavidS127]

The QBI carryover amounts would only be losses generated in 2018 (first year of QBI), if the rental activity qualified for QBI for 2018.  So, the QBI carryover amounts are different that the Regular and AMT passive loss carryovers.  You should be able to find that amount in the detail of your 2018 tax return.

When the 2018 tax return was prepared with TurboTax, the 2019 return will have the 2018 carryover for QBI loss carryforward on the Federal Carryover Worksheet.  The Regular and AMT passive loss carryovers are shown on the Form 8582 and Form 8582 AMT worksheets.