What line number do I fine the passive loss carryover for rental property on the Schedule E?

[mobydicklet]

After finding Unallowed losses, Form 8582, Worksheet 6, Column b to enter into Schedule E

 passive activity losses on line G, Schedule E Suspended Loss,

Now Turbo Tax Premier 2019 asks for At Risk Operating Loss, so how to calculate that number ?

There is no mortgage on either rental property.

There have been extensive repair costs.

Thanks in advance.

[ThomasM125]

An "At Risk Loss" would occur if you had a loss on the property and you were not "At Risk" up to the amount of the loss. To be at risk, it means that your basis in the properly is less than the losses the properly is generating.

You basis is basically what you invested in the rental activity, plus any income you reported on your tax return over the years, less losses that you deducted.

So, you would have to do a basis calculation to determine what your at risk loss is. It would be the amount of your basis, if it was negative.

Here is an article on how to calculate basis:

https://taxmap.irs.gov/taxmap2016/pubs/p541-006.htm

[toecheese]

where would I find the AMT Carryover from the previous year?

[toecheese]

Do I enter this number as a negative or a positive?

[MJMann]

What happens if you don’t enter anything ? 

In prior years, my husband has been doing our returns assuming TurboTax is carrying forward this information and automatically entering it where it needs to be.  During the interview on TT2021, it asks if any of these situations apply: second from the last I believe was passive losses , which we did have according to the definition and explanation.  The next screen wants me to enter something under “Regular tax” : is this current year PAL from schedule E (loss or profit). And than PAL carry overs from prior years as the last entry im that box which I can take from the federal form for PAL correct? 

If so, why isn’t this information populated automatically or is it? 

thanks 

[DianeW777]

Yes, you need Form 8582 from your 2020 tax return to enter your passive loss carryover.  If the box is blank then TurboTax is not entering the carryover for you.  Be sure to enter the amount from Part VII, page 2 Form 8582.

[pyropinup]

So, is this requirement to enter in your passive loss carryovers new in this section? Form 8995 carries over the passive losses from year to year and accumulates correctly.

Does this mean I have to go back and amend all of my returns? How does NOT entering this information here affect my tax liability, because again, it shows up in From 8995.

Thank you

[RobertB4444]

@pyropinup  If your passive loss carryover is correct then you have no need to go back and amend prior year returns.

[pyropinup]

Hi Robert... just to make sure I understand correctly, are you saying that if the passive losses carryover correctly in Form 8995, that I don't have to click the button that was in the post from MJMann ( the one just prior to my post) and enter it there?

Thank you for your guidance.

Jeanne

[Laila1]

Hello - 

This is what I have on Form 8582, worksheet 5 (2020):

Name of activity | Form/schedule line number| a) loss |b) ratio | c) unallowed loss

xyz    | E ln 22 | $15045 | .5616 | $6896

How do I enter this $6896 as unallowed loss? 

in the interview, TT is asking for "Regular Tax carryover".

[Laila1]

@DianeW777 

Hello -

This is what I have on Form 8582, worksheet 5 (2020):

Name of activity | Form/schedule line number| a) loss |b) ratio | c) unallowed loss

xyz    | E ln 22 | $15045 | .5616 | $6896

How do I enter this $6896 as unallowed loss? 

in the interview, TT is asking for "Regular Tax carryover".

[AmyC]

In the rental interview, go to property profile. Select the carryover and enter the information.

@Laila1

[DennisC1]

On what line number of form 8582 do I find that amount?

[AbrahamT]

Pg. 8582  Part 1- 1b

[DennisC1]

Would it be 8582 Part1 1b + 1c ?