Should I use 2018 Unallowed Losses on form 8582 to enter into Turbotax PASSIVE LOSS - REGULAR TAX CARRYOVER SCHEDULE E?

[Greg-o]

I did not use Trubotax in 2018.  For Rental Property, sold in 2019, should I use 2018 Unallowed Losses on 2018 form 8582 to enter into Turbotax PASSIVE LOSS - REGULAR TAX CARRYOVER SCHEDULE E? 

[jtax]

I can't tell for sure without looking at both year's returns (and maybe more back returns), but that sounds reasonable IF the rental property in question is your only passive activity with prior losses. If you have multiple passive activities I wonder if there might be an issue because you can only free up unallowed losses when 1) there are passive gains or 2) when the property generating those unallowed losses is sold or transferred in a fully taxable transaction.

[Critter]

Any carryover amounts from the prior year return need to be entered in the proper place when completing the 2019 return ... failure to do so would short change you and you will end up paying more taxes than you should.  Follow the interview screens in the Rental section to enter in the passive losses as directed. 

[Carl]

You're referring to Part IV of the 8582. Understand there is a difference between unallowed losses (worksheet 1) and  unallowed deductions (worksheet 2). You will enter the amount in unallowed losses as shown in Part IV worksheet 1.

If you have multiple activities listed there with unallowed losses, make sure you enter the correct amount for your specific SCH E activity.