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printworthy
Level 2

Loss Carryforward - Sale of Rental Property

Good Morning:

 

I am using Turbotax Premier and did so in 2019 as well. My 1231 Tax Loss Carryforward is not showing up in my 2020 return and I cannot see where to enter it manually this year.

I sold a rental property (active not passive) in 2019 and had a substantial Loss such that my Taxable income was zero.

I did not use the total amount of the loss and would like to enter the remainder in my 2020 taxes.

 

In 2019, it was done on Form 4797 and the loss transferred to Schedule 1 (Adjustments to Income) and on to Line 7a of my 1040.

 

How do I get the balance of the loss to carryforward in TurboTax for this year?

4 Replies
tagteam
Level 15

Loss Carryforward - Sale of Rental Property

The sale of rental property is typically treated as the sale of business property and, as such, a loss on the sale can create a net operating loss (NOL).

 

As a result, you would need to calculate your NOL (if any) for the 2019 tax year.

 

See https://www.irs.gov/publications/p536#en_US_2019_publink1000177330

 

Note that TurboTax neither calculates nor carries forward an NOL.

printworthy
Level 2

Loss Carryforward - Sale of Rental Property

Many thanks. So once I manually calculate the NOL on the IRS worksheet 3 (536 Pub), there is no way to manually enter it into Turbotax and e-file - right?

I am then manually filing with my attached worksheet?

Thanks

Marc

 

tagteam
Level 15

Loss Carryforward - Sale of Rental Property

Yes, you manually calculate the NOL.

 

TurboTax will not carry the NOL forward but, depending upon the version you are using, an NOL can be entered in the Less Common Business Situations section under Net Operating Loss/QBI Carryforward Loss.

printworthy
Level 2

Loss Carryforward - Sale of Rental Property

 

Thanks for your help. Due to your answer I was able to find the right spot to enter my NOL and complete my return.

Thanks again,

Marc

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