Form 8582 and Schedule E dealing with passive loss carry forward

[Anonymous]

I am trying finish my 2022 return. I have had the same carry forward loss on Form 8582 since 2014. Every year, I would go through the Schedule E questions. This year I entered 0 rental days and 364 personal days. This would result in an error message that told me to delete Schedule E. I looked at my old Schedule E's and noticed that I entered 0 rental days and 0 personal days and got the proper Form 8582 entry for my carry forward loss.

I'm confused. What am I doing wrong? Which is the proper way to tell TT to continue tracking the loss until I sell or convert it back to a rental property?

[Mike9241]

so you converted rental property to your personal residence. then keeping track of suspended passive losses  cost and depreciation taken when it was a rental are your responsibility. you were suppose to delete schedule E for it since it is no longer was a rental. then when you sell that info will have to be entered.

[Anonymous]

Do I keep the last viable copy of Form 8582 p1 with the current years taxes? Or, can I fill out just Form 8582 p1 on TT H&B 2022 and every year until the loss and depreciation is used?

[AmeliesUncle]

TurboTax is negligent in this situation.

The IRS Instructions clearly tell you that you should continue to file Form 8582 every year.  But TurboTax incorrectly won't do it unless you also file the passive activity (Schedule E).

[Anonymous]

I guess I can copy the same info as the 2021 Form 8582? There's a few Parts to deal with.

[Anonymous]

Has anyone figured out how to efile with Form 8582 in this situation? I can't simply add the form and fill it out. 

[Anonymous]

I've been messing around with a copy of the tax file. After starting a Schedule E, you are given two options. It seems easier to choose Option 1.

Days rented at a fair rent price: 0 (range is 0-365)

Personal use during the year: 364 (range is 0-364)

Option: 1

I did not rent, nor attempt to rent, this property at all in 2022: Not checked

This option allows Schedule E and Form 8582 to be included with your filing.

Option 2:

If checked, TT H&B 2022 gives message:

"Since this property was not a rental for all of 2022, you should delete it as a rental. Make sure to to keep your complete return, including the Depreciation Report for this property, from 2021 (or the last year this property was used as a rental). You’ll need that information when you sell the property or convert it back to a rental.”

This option deletes your Schedule E and Form 8582 from being included with your filing.