Turbotax is deducting real estate losses when I did not sell the rental property, different from last year - Help

[vatester]

Hello,

I own 2 rental properties and sold property 1 in 2019 which had a loss carryover of $35550, this is correctly being treated by Turbotax Premier. However, the 2nd rental property which I have not yet sold has a carry forward loss + 2019 loss of $22260, which is being deducted even without being sold. 

I am an active participant, with passive losses and my income does not allow to claim passive losses. Why is Turbotax allowing me to deduct this loss, when it did not do it last year? Is the sale of my 1st property somehow triggering Turbotax to treat the 2nd property as also sold in 2019?

Please assist, any help will be greatly appreciated.

Regards,

[M-MTax · Accepted solution]

Sale of the 1st property is triggering the release of the losses from the 2nd OR you're getting the $25k allowance because you're an active participant.

[vatester]

Thanks @M-MTax . I was not aware that capital gains from sale of a rental property can be offset with passive losses of a 2nd property, even if the 2nd property is not sold.

Greatly appreciate the quick response