I have a rental property in my own name and had a loss of 40,000 in 2018, owing to repair etc. Can I carry forward this loss to 2019?

[DanielV01 · Accepted solution]

Loss that cannot be claimed on a rental property due to passive-activity limitations is carried forward until it can be used, yes.

[mplusplus]

Hi, sorry what is meant by "Loss that cannot be claimed on a rental property due to passive-activity limitations" please? Thanks so much.

[DanielV01]

There are two possible limitations.  No one (except a professional real estate agent) is allowed to take more than $25,000 of loss from a rental activity in one year.  People with higher incomes are not allowed to claim any loss.  However, the loss is suspended until it can be used in either case.  For the first situation, $25,000 will be allowed now and the rest carries forward.  In the second case, the loss could be suspended until the property sells.  Once the property sells, the loss may then be claimed.  Either way, you want to keep track of the loss.  If you continue to use TurboTax, the program will track it for you.