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7dSEypIc30
Returning Member

How do I report tax-loss carryforward for rental property

I went several years without claiming depreciation for a rental property.  In 2020 I filed form 3115 to change depreciation method and to claim missed depreciation for prior years.  Doing my 2021 taxes now, I do see Schedule E (Regular Tax Carryover) for the amount of missed depreciation, for simplicity it's $10K.  In 2021 my rental has generated $600 of net income.  If I understand correctly, I can apply carryover loss to this net income, so I can claim net income to be zero and carryover $9.4k to next year.
 
Question: where/how in turbo tax do I enter this?  Should I just add a miscellaneous expense line for $600 (carryover loss)?  How would I report the remaining $9.4k carryover loss so there's a history for all these transactions?
 
Thank you!
 
  
 
 
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2 Replies

How do I report tax-loss carryforward for rental property

after you enter some initial property info, you should come to a screen where it asks if you have a passive activity real estate loss carried over from prior years. check the box and then on the next screen as a negative number enter the loss carryover as a negative number for both regular tax and amt tax. it will also ask about a QBI carryover.  you would have to look at your 2018 return to see if you classified it as a Qualified Buisness activity.

if so the losses for 2018 through 2020 would be entered.

 

 

7dSEypIc30
Returning Member

How do I report tax-loss carryforward for rental property

Thanks @Mike9241 , trying to follow your directions but unable to make it work.  I am using online premier version, perhaps it's different. 

But best match I found is this, in section: 'Carryovers, limitations..' I see passive income loss carryover amounts, when I click 'make changes' there's a checkbox 'I have passive activity losses reported on Schedule D or Form 4797', If I click the checkbox I see 2 sets of boxes: 1- Sch D (short term) regular tax carryover, Sch D (short term) Alt Min tax carryover and 2 - 4797 (short term and long term).  Either of those boxes would not allow me to enter a negative number.  If I enter a positive number and continue to the next screen where it prompts me to enter amount of passive losses for years 2018, 2019 and 2020 (pre-populated).  Instructions for the boxes say that if there were no losses - enter zero.  But when I try to enter zero for years 2018 and 2019 and submit - form validation says 'Value must be greater than 0'.

 

Let me know if I am not looking at a right section etc.  Thank you!

 

here are some screenshots:

 

1.png

 

 

2.png

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