How to add a suspended passive loss to 8582 for a property not rental anymore

[Frank666]

I have two properties: property A was a rental before with suspended passive loss, but is now a primary residence. Property B is a rental property with positive rental income. TurboTax doesn't allow me to add property A to Schedule E or 8582 because it says it's not a rental property. Then how can I (manually) add the suspended passive loss from Property A (as a separate property) to 8582 to offset my positive rental income from Property B? Thanks!

[Mike9241]

three options

1) put the residence back on schedule E (description rental converted to residence) but no data except these items - check the active participation box, enter the passive loss carryover in that section  days rented 0, personal use 0

2) put the pal c/o on the new property. this may create issues should you convert your residence back to rental

3) keep track outside of Turbotax and then enter only the usable PAL c/o in the pal c/o section of the new property until its used up. This would have to take into account any special allowance if your AGI is below $150K

I favor option 1. 

there is no other place where Turbotax tracks PAL. c/o any override on the8582 prevents e-filing.

[Frank666]

Thank you @Mike9241 ! I've tried your option 1 with TurboTax, but after I entered 0 days rented. TurboTax will tell me since it's not a rental, it will remove my property from Schedule E :(  Are there any ways I can manually add this property information to Schedule E / 8582? 

[Mike9241]

did you also enter 0 days personal use both boxes are required?.  i know of no other solution than what i provided.  overriding 8582 and you have to file by mail. 

I use desktop and get no errors in review but obviously i can't do the final step to e-file. 

[Mike9241]

if that doesn't work  did you indicate it's  single family residence for type. 

other things to try: enter an asset -type residential rental 

dates anything you want but make sure they valid

 cost $1

land cost $1

there should be no form 4562 with this type entry

[Critter-3]

What you want cannot be done ... the suspended loss on the rental converted to personal use is carried forward until you either sell that property or convert it back to a rental.  That is why you cannot find a way to force the program to apply loss A to property B. 

[Frank666]

I have asked my previous CPA, and his answer is that I should be able to offset my property B positive rental income with the suspended passive loss from property A, and his suggestion is to add it to 8582, but the problem is that TurboTax doesn't seem to allow me... 

[RobertB4444]

@Critter-3 is right.  In order to take the suspended passive losses you need to have a complete disposition of a passive activity.  In your case you don't have that.  I would have advised you to take the suspended losses in the year that you converted the house to personal use if you were never going to convert it back so if you can amend that return then you should do so.  If you can't then the suspended losses are suspended until you have a disposition to bring them back in.

@Frank666 

[AmeliesUncle]

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@Frank666 wrote:

I have asked my previous CPA, and his answer is that I should be able to offset my property B positive rental income with the suspended passive loss from property A, and his suggestion is to add it to 8582, but the problem is that TurboTax doesn't seem to allow me... 

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Your previous CPA is correct.

You are correct that that TurboTax is faulty and just deletes the carryover rather than allowing the loss to continue on the 8582.