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TC6
New Member

How do you apply Suspended Passive Losses correctly when sell your Rental Property?

I sold my rental property but the suspended passive activity losses doesn't seem to apply correctly.  The steps I have taken to enter in TT as follows: 1. Select Sold or Disposed this property-under property profile. 2. Enter Prior Passive Losses under Sch E. Regular Tax Carryover 3. Enter Depreciation and select Special Handling Required - due to lower FMV during personal to rental conversion.  4. Enter information of the sale in Section Sale of Business Properties.  However, I don't see the adjustment to my Federal Tax Due when Passive Losses being apply.  Do I need to manually adjust the cost basis?  How do I verify it is correctly adjusted?
3 Replies
Coleen3
Intuit Alumni

How do you apply Suspended Passive Losses correctly when sell your Rental Property?

It seems like you are doing everything correctly. It is difficult in a forum like this to see what is going on in your program. One easy way might be to take out the losses (it sounds like you added them manually rather than having them be carried forward from a prior year) see the return and then add them in again.

If this still doesn't seem to be correct, you can have an agent remote in and look at your return. Follow these steps to be connected to TurboTax support:

  •     Go to:  Turbo Tax Support
  •     Select your TurboTax platform (Windows or Mac).
  •     Briefly state your problem.
  •     Click Submit.

    On the next page, choose the Call option and follow the instructions.

 You'll then get a toll-free number to a TurboTax expert who is specially-trained to handle your particular issue.

TC6
New Member

How do you apply Suspended Passive Losses correctly when sell your Rental Property?

Thanks for the quick reply. I did manually entered the carry.  What finally works for me is correct from last year's return and transfer to current.  TT automatic carry the PAL correctly for me this time, and follow the same steps to disposed.  Thanks again!
Coleen3
Intuit Alumni

How do you apply Suspended Passive Losses correctly when sell your Rental Property?

Glad I was helpful.
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