What is passive loss carryover

[SteveC4]

Sorry for the misunderstanding, but I'm talking about a passive loss in 2019 that can offset taxable income earned in 2019.  This is not a carryover situation. Has Turbo been updated to calculate this based on the CARES Act?

[James109]

Just to confirm and or clarify in the new Cares Act my passive loss carryover can be applied to my earned income? My CPA is telling me that I can only use a business loss not my K1 loss from passive investments.

Thanks

[VictoriaD75]

No. The CARES Act updates applies only to NOL (net operating losses), not passive losses. Passive losses continue the same tax treatment. If you have passive losses, they may be used to offset passive income. Passive loss limitations apply. 

The CARES Act permits NOLs from the 2018, 2019, and 2020 tax years to be carried back to the previous five tax years (beginning with the earliest year first) and suspends the 80% of taxable income limitation through the 2020 tax year. The NOL carryback can result in an immediate refund of taxes paid in prior years.

[nhmkmhyh]

Where are the screenshots?

[BillM223]

@nhmkmhyh

In May-June of 2019, the old AnswerXchange system was moved to a new platform (this one). In that migration, the screenshots were not carried over, so there are no screenshots.

In the future, screenshots will appear inline in the answer, not attached below as before.

What screenshot did you need?

[dorothysrobertson1]

Hi, I'm trying to figure out what to put for the regular tax for passive loss carryovers. I've been going over the 2018 forms and haven't been able to figure out what the losses have been. I really need some help. 

[Farhad V]

I have same questions as Dorothy above.

My 2018 taxes were done professionally. I have sch E,D and worksheets.

I don't know where to find 2018 at-risk (or passive) losses "Regular Tax Carryover" and "AMT Carryovers" on sch E

[DavidS127]

The regular and AMT passive loss carryovers will be on the Form 8582 and Form 8582-AMT worksheets from your 2018 tax return.

Note that if your property qualified for Qualified Business Income (QBI) deduction in 2018, the QBI carryover loss is only the 2018 loss amount.   For TurboTax returns, that QBI carryover is shown on the Federal Carryover Worksheet.

Typically, entering these amounts is only necessary when you are using TurboTax for the first time (or using a different TurboTax Online account than was used in 2018).

[taxes99]

If I do not have 8582 AMT form, should I put $0 in question about passive loss carryovers AMT box? Thank you

[esha123]

Where can I enter passive loss carryover from 2018 8582-

Worksheet 5 ' Allocation of Unallowed Losses in this year turbotax 

[taxes99]

on mine, TT shows it entered it on schedule E Line 28A...I am not 100% sure that's correct. I've had a lot of issues with TT this year and transferring relevant info from 2018.

[SusanY1]

Schedule E, line 28 is the correct place for a suspended loss that is realized on the sale of a rental property to appear.  

@taxes99

[esha123]

I don't see line 28 in Schedule E.  My form ends at line 26 

[DawnC]

Line 28 is on page 2 of Schedule E, your screenshot is of page 1 only.   @esha123

[esha123]

Page 2 of Schedule E does not exist for me.