For 1040-NR filer, how to carry over rental loss?

[chengen]

For 1040-NR filer, if the only income is from one rental property (SFH), and there is rental loss because rent doesn't cover expenses and depreciation, how to carry over the loss until the sale of the property?

[MichaelL1]

Was loss taken in current year or disallowed due to income levels?

[chengen]

Rental is the only income (and only one SFH). 2017 expense plus depreciation is way more than rent. 1040-NR also has $4500($4050?) exemption. But in the end it just shows income is 0 (not negative amount). When reporting 2018 tax next year, if there is profit, how can 2017 loss offset that? Thanks.

[MichaelL1 · Accepted solution]

TurboTax will continue to allocate the carry forward losses as long as you don't delete the property.  

When you transfer in the prior year return when you do the 2018 return, TurboTax will carry forward this disallowed to the 2018 return.

If you are able to use it in 2018, TurboTax will do that for you.  If unable to be used, it will carry forward then to 2019, it will continue to be carried over until used or the building is sold (at which time it will be used). 

[chengen]

Can you please advise, which turbotax version has this functionality? (This is for 1040-NR). Also can you please advise, if filer use paper form, which form should be used for the loss carry forward? Thank you.

[MichaelL1]

Ok thank you, I'll give you the forms it will appear on for you.

[MichaelL1]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f8582.pdf">https://www.irs.gov/pub/irs-pdf/f8582.pdf</a> and the instructions for the Form 8582, as you will have to manually carry it forward.  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i8582.pdf">https://www.irs.gov/pub/irs-pdf/i8582.pdf</a>

[chengen]

Thank you very much for the answer.