Rental Loss Carryover

[Phil]

Hi.

I had a loss last tax year (2021) due to tenants trashing the house.  I had a lot of repair expenses.  I made too much to deduct any of the losses.  I paid no tax for my rental that year, as it was a big loss.  Is there a way to carry forward those losses to this year (2022)?  I have made a profit for the rental in 2022.  

If so, how do I document in TurboTax.  I used it last year as well.

Thanks.

[Mike9241]

was line 11 of the 2021 1040 a loss?   then you had a net operating loss (Turbotax does not compute this). you can use schedule A of form 1045 to figure. https://www.irs.gov/pub/irs-pdf/f1045.pdf  that gets entered on schedule 1 line 8.

was any of the loss limited to the passive loss rules form 8582, Turbotax carries that forward automatically.

[Phil]

Line 11 of 1040?  Isn't that adjusted gross income? No, that was not a loss.  Line 21 of Schedule E was a big loss.  Line 22 of Schedule E was 0.

[DawnC · Accepted solution]

Yes.  If you had passive losses from a rental last year, those losses carry over on Form 8582.   You can use those losses on future passive income (rentals are passive activities) or when you sell the property.   It is normal to generate losses from rental activities.    If you used TurboTax last year, your unused rental losses will be applied to any rental profits you have this year.  

[Phil]

Thanks.  I was able to follow the rabbit trail through the forms to see where it applied the loss.  

[jaggy]

Can you help me track where can I find the loss from my rental property from last year?

[PatriciaV]

If you have a copy of your return from last year, look at Schedule E Line 22, which shows the deductible loss. 

Passive Activity Loss Limitations are reported on Form 8582. Part IV shows Prior years losses (from the year before). If you had an Unallowed Loss (to be carried over to the next year), look at Part VII.

@jaggy 

[SecureWon]

I have a somewhat similar situation, but just normal loses from a couple of months of our rental not being leased.  From what I have been reading, passive rental loses phase out with a MAGI between $100k - $150k.  MAGI over $150k there is no deduction (married, filing joint).   In my case, our MAGI is over $150k so we aren't getting any deduction.  I still question if that rolls forward and haven't sorted that out yet.

So, as I understand it, MAGI should have been part of this conversation in order to render an appropriate response.