I had a passive loss in RE activities in 2019. This is my 1st year owning rental property. My return did not include a form 8582. How do I know I don't need that form?

[Carl]

Residential Rental Real Estate will practically always operate at a loss; especially if you have a mortgage on it.  For your first year at a minimum, it's no surprise and no big deal if 8582 isn't generated by the program. Depending on your specific and explicit situation, up to $25K of passive losses *could* be allowed against other ordinary income. It just depends on your situation. The program will "know" based on the data YOU enter.

[trevor-mccloskey]

So if I had less than $25k in losses in my first year, I wouldn't have to file an 8582 because I am not deferring any of those losses into future years?

[Anonymous · Accepted solution]

the iRS instructions say no 8582 is required if the losses are less than $25,000 and

1) fully allowed (no limit due to AGI) and thus no carryforward 

2) no prior year carryforward 

[trevor-mccloskey]

Perfect.  Thank you!