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Recapture of disallowed passive loss on the sale of house

I filed a Form 3115 in 2018 for depreciation that I had not accounted in the 6 years prior. I had passive loss of $39,630 which included $35,630 for catch up depreciation and some of the 2018 depreciation and other expenses. Due to income limitations, the deduction was disallowed.   What form do I have to fill out to recapture the disallowed amounts? 

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6 Replies

Recapture of disallowed passive loss on the sale of house

The missing depreciation should have been reported on the Sch E which would have automatically generated the 8582 in 2018  which will carry forward until you can use the loss.    

Recapture of disallowed passive loss on the sale of house

in the year you sell the property, the cumulative disallowed passive losses become a deduction not subject to the PAL rules. 

Recapture of disallowed passive loss on the sale of house

Critter, It was reported and and did carryforward.  It all showed up as it should as I continued on the return.  Thank you for your help.

bobby runner
Returning Member

Recapture of disallowed passive loss on the sale of house

if i sell rental property where I had had passive losses for several years, that were non deductible, and I sell the property, where do I enter such losses in the year of sale; or does Turbo Tax do it automatically

Recapture of disallowed passive loss on the sale of house

Turbotax keeps track of the suspended passive losses and upon complete disposition (you got to check that box)  you should see it automatically reported on schedule E page 1 on line 19

 

bobby runner
Returning Member

Recapture of disallowed passive loss on the sale of house

Thank you very much. I appreciate your help 

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