Can I claim passive activity real estate losses carried over from last year for the same rental property if I also made too much money to take a passive loss this year?

[frankjf1953]

I make too much to claim losses this year, I also made too much this year.  I guess I am wondering if I can take loss from last year as one carried over for this year.

[IuliiaK2 · Accepted solution]

Generally, passive activity losses are limited to amount of passive activity income. Losses carried over from last year can be used to offset passive activity income only. You may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity.

[DianeW]

Regardless if you will have another loss this year, or whether you will use any of the loss that is a carry forward from last year, you do want to be sure this loss is recorded in your current year so that it does get used when the time comes.

In your case, since your AGI is too high, your unallowed losses are carried over to next year. Then if your AGI is lower, *and* you have the rental income from which to deduct those losses, they'll be deducted next year. Otherwise, they just carry over year to year until the tax year you sell or otherwise dispose of the property. 

Please check your rental activity to be sure the losses did carry forward (TurboTax routinely does this automatically if you used TurboTax last year).

• Search (upper right) for rentals, then use the "Jump to" link to arrive at the rental section.
• Edit next to your rental, then Continue to the screen titled "Do any of these situations apply?"
• Scroll down to "Carryovers" and check the information
• Click the image attached to enlarge and view for assistance.