Passive Losses

[satyamami]

Hi,

I have unhallowed passive losses each year in 2015, 2016,2017,2018 & 2019 and reported each year losses specific to that year ONLY. I never reported cumulative passive loss to IRS.

I mean in 2016, I did not add 2015 unused losses.

I mean in 2017, I did not add 2015,2016 to 2017 unused losses.

I mean in 2018, I did not add 2015,2016,2017 to 2018 unused losses.

I mean in 2019, I did not add 2015,2016,2017,2018 to 2019 unused losses.

Question - Can I report cumulative passive losses from 2015 thru 2019 on 2020 tax returns though IRS does not have a track of mu cumulative amounts?

In other words, if I don't report cumulative, do I lose them?

[Mike9241]

did you use Turbotax all those years?  are you sure they weren't used?  you have to look at Form 8582 each year to see if any passive losses were allowed and the carryover. the exception is PALs from Publicly Traded Partnerships (PTP). The carryover for rental activities would be on the schedule E Turbotax worksheet in the section Carryovers to 2020 Smart Worksheet. PTP losses don't flow through that form.  For those, you need to look at the Turbotax K-1 form Section A,

if you started each year correctly and used Turbotax should have picked up any PAL carryforwards or asked about them in step-by-step mode.  

please check prior returns to see what your situation is and post back including what type of activity produced the PAL - rental, partnership, S-Corp, other (?) 

for any PALS that would flow through Form 8582 you'll probably need to see a pro because the c/o's would need to be adjusted for any that would have been utilized.  Turbotax no longer supports those years so the proper calculations would not be possible.

[satyamami]

Thank you for the response.

Yes, I used Turbo Tax and it did not carry forward automatically(could be my mistake).

Yes, I looked at 8582 and Sch E for used vs unused. No year I was eligible based on AGI.

I did look at PAL worksheets/year, they do have unhallowed losses for that year but not from prior years.

PAL is from residential rentals.

If I didn't report cumulative PAL each year; Can I still report in 2020? like a true-up returns with correct info?

[Mike9241]

i can find nothing on the web about how to handle your situation. Normally, I would suggest amending prior returns to show the PAL c/o.  The IRS says you have 3 years (sometimes 2 years)  to file an amended return if you are claiming a refund or credit. you are not.   if you try, entering the entire PAL c/o on 2020, I'm not sure what the IRS might do and it could take 2 or more years if it decides to take any action.  I would suggest you seek to help of a tax pro who could further research the issue or if you wait perhaps another member will post more definitive information.