I had a loss on my rental but no income to offset the loss. I am an active participant. Can I carry over my loss?

[ThomasM125]

An unused rental loss can be carried over to future years. Since you say you had no income, I believe you mean that you had rental property expenses but no rental income. If so, you can only recognize your loss if the property was available for rent during the year. 

[rentaltax2018]

Hi, thanks for the reply.  I meant I had no other income to offset the loss.  I did have limited income from the rental.  

[JohnB5677]

In that case, yes. Rental losses continue to carry forward year after year until the losses are either used up by offsetting rental profits or by being deducted against other income.

     What is passive loss carryover      

   IRS: Passive Activities – Losses and Credits

[Carl]

If 2022 was the very first year the property was available for rent, you can claim expense incurred from the date the property was available for rent. The fact you didn't have a renter in the property doesn't matter. What matters is that the property was "available" for rent. Typically, (and depending on your circumstances) the program will automatically carry over losses each year on the form 8582.

[rentaltax2018]

I had a loss on my property for the first time in 4 years.  I am an active participant but no other income to fulfill the $25000 active participant exception.  This exception eats up my loss.  Can I choose to carry it over as a passive loss even if I am an “active participant” ie I rent it out and hire repair people, etc. eyc.  Manage it myself.  It’s my only rental.

[GeorgeM777]

Yes, the rental loss you cannot deduct can be carried forward for use in subsequent years.  To take advantage of the exception when there is active participation (and modified adjusted gross income within certain limits), the loss must have been incurred in a year when there was active participation.  If there is a year when a rental loss was incurred when participation was not "active," then such loss, which can be carried forward, remains a passive loss and cannot be used when calculating the exception under the active participation rules.  

@rentaltax2018

[rentaltax2018]

So, can I go back and forth from passive to active?  Also, which forms should be generated in each case.  I was told I couldn’t carry forward the loss.

[Carl]

Yes. Just work through the rental as you normally would, entering $0 for rental income. The program will take care of any carry over provided you qualify. (You most likely qualify, so I'm not going to waste time with details.)