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mostlywind
New Member

Can the calculated passive loss on old years for rental home be claimed in year sold? Loss was not reported on 1040 in certain old years due to depr. not being claimed.

Just to be clear:  Rental home sold this year.  Depreciation expense not claimed four or five years ago which would have caused a passive loss.  Can't amend those years.  Can the calculated loss from those years be claimed even though it wasn't reported.

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MichaelL1
Level 15

Can the calculated passive loss on old years for rental home be claimed in year sold? Loss was not reported on 1040 in certain old years due to depr. not being claimed.

You cannot claim a passive loss that was never reported on a tax return as a carryforward loss. 

If any of those years are from 2014, 2015 and 2016 an amended return should be filed.

If older than that, then no amended can be filed.

It is always good to claim all deductions including depreciation as IRS uses a rule called "depreciation allowed or allowable" when computing the gain or loss on an asset that could be depreciated. 

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1 Reply
MichaelL1
Level 15

Can the calculated passive loss on old years for rental home be claimed in year sold? Loss was not reported on 1040 in certain old years due to depr. not being claimed.

You cannot claim a passive loss that was never reported on a tax return as a carryforward loss. 

If any of those years are from 2014, 2015 and 2016 an amended return should be filed.

If older than that, then no amended can be filed.

It is always good to claim all deductions including depreciation as IRS uses a rule called "depreciation allowed or allowable" when computing the gain or loss on an asset that could be depreciated. 

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