Disallowed passive loss carryover?

[jhg6308]

Suppose this year I have passive real-estate income from several properties, but incur a net loss due to a large repair outlay on one of those properties.  This shows up on Form 8582 p2 Part VIII in the "Unallowed Loss" column.  I understand that for passive losses you cannot deduct more than your passive income.

Question 1: Suppose next year I have a positive net passive income, will that unallowed loss be applied against next year's income?

Question 2: Will TurboTax do this automatically next year if I import this year's tax return?

Question 3: Is there any indication of this being carried over on THIS YEAR's tax return?

[Mike9241 · Accepted solution]

1) yes

2) yes

3) look at form 8582 part VII where the unallowed loss for each property is calculated