How do I keep form 8582 for past passive losses? TurboTax has provided a 8582 in past years when I say there are no rental days on Schedule E. Won't work for 2017.

[craighochhaus]

I haven't had rental days for a few years for a property.  Each year, I've carried forward passive losses on form 8582 by stating on Schedule E that I have no rental days and no income. For 2017, TurboTax is forcing me to remove this property from Schedule E (since I have zero rental days) which then forces the form 8582 to disappear.  Why is this different for 2017?  BTW, we are selling the property in 2018 and I'll need the passive losses when calculating the gain on the sale when I do my 2018 taxes next year.

[AmandaR1 · Accepted solution]

There have been some changes/improvements to this section. Indicating "0" rental days, will force the software to mark that it's no longer a rental (forces passive losses to be released), which is correct according to the IRS. 

If the property isn't being used for personal use while you hold it to sell, then you should say it's still a rental for every day this year.  You don't have to report any income or expenses, but this will achieve what you've experienced in the past, of carrying forward your losses. 

The IRS specifically allows this type of reporting. From Pub 527 for rental properties:

Vacant rental property.

If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.

Vacant while listed for sale.

If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property isn’t held out and available for rent while listed for sale, the expenses aren’t deductible rental expenses.

See this here: https://www.irs.gov/publications/p527#en_US_2017_publink1000219000

Review your rental property entries under:

• Head into Rental and Royalty Income and answer the basic rental questions >>> 
• select to Edit the applicable property >>> 
• Select Update next to Property Profile >>> 

[gomesmd2006]

Did not rent property. Use it as second home .. No rental loss.  Why do my 2019 show the loss, even though I told the system that I was not renting.

Dan

[Critter]

First much of the 2019 program is NOT fully operational yet and will not be until sometime in January.   Then if you still have issues following the instructions in the other answer ....

 

Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation.

See this TurboTax support FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number
They are available M-F  from 5 a.m. to 5 p.m. Pacific time.

[Carl]

Did not rent property. Use it as second home .. No rental loss. Why do my 2019 show the loss, even though I told the system that I was not renting.

Then you should not be reporting anything on SCH E concerning rental income/expenses. If you do "anything" with SCH E, you *MUST* be showing that you converted it to personal use on Jan 1, 2019 since you clearly state you did not rent it out, and used it as a 2nd home.

One thing you "MUST" do though even if converting to personal use on Jan 1, you have to indicated that it was rented for one single day. Anything less, and it's not a rental as far as the IRS is concerned. You can still show zero income/expenses, and that's fine.