We have owned a rental property house for about 10-12 years and over that period of time we have built up a fairly significant passive loss carryover. We are now using the house for our own use and have not rented it at all in 2016.
We have no passive income to offset the passive loss carryover at this time so we won't be able to use this passive loss until we actually sell the house which probably won't happen for at least a year or two.
My question is how do I track this passive loss in TurboTax so that I don't lose it? I thought that one way might be to continue to file a Schedule E for 2016 and report zero days of rent but TurboTax declares that as an error if I try to do that. If I remove the Schedule E altogether from my return, I am concerned that I will lose the passive loss in future years.
You'll need to sign in or create an account to connect with an expert.
Passive activity losses are calculated on Form 8582. Print all of the worksheets for your records ,you will need the accumulated depreciation also.
Passive activity losses are calculated on Form 8582. Print all of the worksheets for your records ,you will need the accumulated depreciation also.
This makes no sense - I have h&O and the same prob - I’m not renting my house anymore - but if I change asset status sch e goes away and all carryover passive losses - is there not a way to transfer those carryover losses somewhere else - HELP
If you select the option for "I did not rent or attempt to rent this property in 2019" then the SCH E and EVERY BIT OF HISTORY on that rental property will be deleted permanently and forever. Period. End of Story. In the end, this is *EXACTLY* what you want *******IF******* *AND* *ONLY* *IF* you converted the property to personal use on your 2018 tax return. (If you did that correctly and completely, then the SCH E data for that specific property should not have imported into your 2019 return in the first place.)
On the tax return of the year you converted the property to personal use, you need to print out several documents and keep those documents ***FOREVER***. You will need them when one of three things happens in your live.
1) You convert the property back to a rental or *any* *other* business use.
2) You sell the property.
3) You die.
First, your need the two IRS Form 4562's for that specific property. These forms show your depreication on the property. Both forms print in landscape format. The first one is titled "Depreciation and Amortization Report" and the 2nd one is "Alternative Minimum Tax Depreciation".
Next, you need to print the IRS Form 8582. That form is 3 pages, but if the last page is not used then only the first two pages will print. Your carry over losses are on worksheet 5, column c.
If in the future you convert this property back to a rental, be aware that the TurboTax program can *not* handle that situation cleanly. You will have to do some finagling with the in service dates in order to get the program to pick up *correctly* where it left off. Otherwise, that future tax return *will* *be* *wrong*. Now TurboTax may fix this problem is the future. But I doubt it since it's been around for the 15 plus years I've been using the program.
So what you’re saying - since I discontinued renting beginning 1/1/2019 all the passive losses from 2018 appear nowhere - and are only relevant when I die or sell etc. So in the interim I can’t offset passive rental income from other activities by the loss carryover of 2018. Seems like 2018 schedule E losses should transfer to 8582 worksheet 3 column C - since there is no Schedule E in 2019 to carry them???
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
zzz8881
New Member
Aquiel16
Level 1
anonymous1131
New Member
steveb444
New Member
syoung123
Level 5
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.