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Level 1
posted Apr 17, 2023 9:20:54 AM

Rental properties (Schedule E) passive loss carryover from prior year and in 2022 it is now in K-1

I used Schedule Es to report the rental properties in 2021 (inside turbotax  tax). This year the rental properties are now reported as part of this new LLC using K-1. 

#1 - I still have passive loss carryover from 2021 that disappear after i deleted/removed the two Schedule Es.  since this is new LLC/K-1 should i key that in as part of the K-1 passive loss from prior year (but LLC does not exist in 2021) ?  or there is other way to enter that via Turbo tax? 

#2 Also, if this year the passive loss still / will be carryover to 2023.  Will turbotax retained that information (like they used to in Schedule E)?

 

Any information will be greatly appreciated 

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1 Replies
Expert Alumni
Apr 17, 2023 11:55:29 AM

When you transfer a rental property to an LLC, you transfer all of the attributes of the property as well (depreciation, cost basis, loss carry forwards).  The passive losses are tracked on and carried forward via Form 8582.  Your passive losses should have carried forward on that form.  If not you will have to manually input the information.  For additional information see:

 

Publication 925 (2022), Passive Activity and At-Risk Rules and 

About Form 8582, Passive Activity Loss Limitations