Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
scherewecome
New Member

Hello. I've review the FAQs and am still not sure what constitutes a passive loss on rental property that I sold this last year. For example, I had to replace the HVAC.

Does a passive loss include damage to a rental unit? Repair of damaged flooring? HVAC replacement? All of these apply to the unit I sold.  Thx.
1 Best answer

Accepted Solutions
view2
New Member

Hello. I've review the FAQs and am still not sure what constitutes a passive loss on rental property that I sold this last year. For example, I had to replace the HVAC.

When total expenses exceed total rental income.

Renting out real estate property is generally considered a passive activity.

A PAL occurs when total losses (including prior year unallowed losses) from all your passive activities exceed the total income from all your passive activities. 

Form 8582 is used by noncorporate taxpayers to figure the amount of any passive activity loss (PAL) for the current tax year and to report the application of prior year unallowed PALs.

Form 8582 , Passive Activity Loss Limitations, is used to summarize income and losses from passive activities and to compute the deductible losses. [check this form in the total print out of all worksheets and forms]

View solution in original post

1 Reply
view2
New Member

Hello. I've review the FAQs and am still not sure what constitutes a passive loss on rental property that I sold this last year. For example, I had to replace the HVAC.

When total expenses exceed total rental income.

Renting out real estate property is generally considered a passive activity.

A PAL occurs when total losses (including prior year unallowed losses) from all your passive activities exceed the total income from all your passive activities. 

Form 8582 is used by noncorporate taxpayers to figure the amount of any passive activity loss (PAL) for the current tax year and to report the application of prior year unallowed PALs.

Form 8582 , Passive Activity Loss Limitations, is used to summarize income and losses from passive activities and to compute the deductible losses. [check this form in the total print out of all worksheets and forms]

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v