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SF2
Level 1

Can I arbitrarily choose to carryover rental property loss to next year?

Imagine I have two rental properties:

Property A: Net profit = $10000

Property B: Net loss = -$2000

This is all my income, so regardless of this loss, my income is less than the standard deduction of $13,850, and I am not benefiting from reporting this loss this year. I'd better keep the loss to report it next year with a potentially higher income. Is that a choice that I can make? If yes, how will it be shown on Schedule E.
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1 Reply
MinhT1
Expert Alumni

Can I arbitrarily choose to carryover rental property loss to next year?

No.

 

You can't choose to defer your loss to next year. The profit in Property A offsets the loss and the net profit is reported in 2023.

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