Are all passive carryover losses on a rental property can be used in the year of the sale ONLY to offset the income of the last year?

[DN76]

Sorry, should've clarified.  I meant I can't use the suspended passive losses from property B to help balance out the property A gain.

What I get now is simply:

I sell property A at a gain, it's not passive income therefore I can't use the suspended losses I built up from property B.

I sell property B at a gain or loss, all the suspended losses on property B get released.

Is this correct?

[Critter-3]

I sell property A at a gain, it's not passive income therefore I can't use the suspended losses I built up from property B.   It is a capital gain so you cannot use passive losses against it.

I sell property B at a gain or loss, all the suspended losses on property B get released.  Once you sell the property it releases all the carryover losses on it ... they are reported on the Sch E and the cap gains on the Sch D. 

[DN76]

Which line on schedule E?

and will these be ordinary losses so will save regular tax instead of capital gains tax?

[Critter-3]

18

[DN76]

Got it. Thanks! 

[DN76]

Can I amend just my past 2018/2019 state tax returns through Turbo Tax?

[Critter-3]

If you used the TT program to complete the original return then you can use the amendment  program to amend the state return.   You must make the changes in the federal section so they can flow to the state.  

• How to amend (change or correct) a return you already filed

[DN76]

Thanks, so I did 2018 and possibly 2019 with Turbo Tax. Then I had to amend 2018 and 2019 federals with a CPA. And I did 2020 federal fresh. So can I still amend all my state tax forms with Turbo Tax, or just 2018/2019 or none? And if I can, how much would it cost?

Thanks

[siegead]

How does one 'force' the NOL into the Turbo Tax filing?

I sold a property in 2020 and after the accumulated operating losses wiped out 2020's income (with an AGI over $100k negative), I am trying to figure out how to put the (unused ... so to speak) NOL into our 2021 return. 

Thank you in advance for help on this.

[Critter-3]

While inside the software and working on your return, type nol carryforward in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to nol carryforward.  Select that link.

Here's more information on NOLs that may be helpful to you: IRS Pub 536 Net Operating Loss

[AmeliesUncle]

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@siegead wrote:

I sold a property in 2020 and after the accumulated operating losses wiped out 2020's income (with an AGI over $100k negative),

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Did you file the election with your 2020 tax return to "Waive the Carryback" of the NOL?

[siegead]

As to "Did you file the election with your 2020 tax return to "Waive the Carryback" of the NOL?", certainly not consciously and frustrated that TurboTax didn't raise this as an issue in the process of dealing with the loss(es).  And, it looks like I should have based on this IRS FAQ on NOL carryback: https://www.irs.gov/newsroom/freque[product key removed][product key removed]backs-of-nols-for-taxpa...  

It looks like I can either (a) do a carryback for previous tax years or (b) carry forward the loss if I file the waiver form. Is that right?

[Critter-3]

It is too late to waive the carryback ... it had to be done on a timely filed original return not on an amendment ... you must now carry it back.  

[siegead]

Thank you for that response.

Do you know how to use TurboTax to apply to the IRS (and then state) for the look-back on NOL?

[Critter-3]

None of the TT programs handles the NOL carryback automatically ... you must compute the loss and the ensuing carry forwards yourself.  I highly recommend seeking local professional assistance in this matter.