Passive Loss Carryovers for Rental Activities are not reported on Schedule E. You will find the carryover for next year on Form 8582, Worksheet 6, Column b.
To see this form in your current year return, you can download your entire return (including worksheets) to your computer as a PDF file to view or print. For this option, choose My Account in the TurboTax header then select Print Center.
(You need to log into TurboTax from a laptop or desktop to do this; Print Center is not available from the mobile version of TurboTax.)Find this under:
@TurboTaxPatriciaV I thought the number show on Line 21 on Schedule E from previous year tax return is the Passive Loss Carryovers for Rental? E.g., for 2014 tax return, you can find this number from line 21 on Schedule E of 2013 tax return. Am I correct?
No. Line 21 of Schedule E is the current year Income or Loss, not necessarily the carryover amount. You may have other activities that influence the amount of Passive Loss carried over to the next year. The actual carryover is reported on Form 8582.
@TurboTaxPatriciaV When I export my 2013 tax return info into 2014 tax return, the number that shows on the Passive Losses From Prior Years screen for 2014 tax return in Turbo Tax is the amount shown on Line 21 of Schedule E of my 2013 tax return.
@TurboTaxPatriciaV Would appreciate if you cane get back to me with the above question again. Thanks!
It is possible for the two numbers to be the same. But you should use the number from Form 8582 in case they are not the same.
Where would I find the passive losses on a rental property for my CA return....I assume I can't just use the federal amount from 8582?
Look for California Form 3801: <a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/forms/2015/15_3801.pdf">https://www.ftb.ca.gov/forms/2015/15_3801.pdf</a>
What if there is no Worksheet 6? My returns from the previous include Form 8582. But it ends at Worksheet 5 with nothing more.
Form 8582 has three pages, and Worksheet 6 appears on the last page. If you don't have that page, you may not have any carryovers from the prior year. You may wish to confirm that you actually did not have that page, either in the PDF you downloaded from TurboTax or with the tax preparation service you used.
I have the same issue.Turbotax is asking for "Regular Tax Carryovers" with a blank box labeled "SCH E". I have schedule E worksheets on previous returns (downloaded from intuit), but no Worksheet 6.
Turbo Tax Premier 2018 told me to check 2017 tax returns Schedule E, Schedule D, and form 4797 for getting the Passive Loss information in the rental property part of the interview... I didn't see it in those three places... I did find it on my 2017 taxes on on form 8582 as the person who posted this stated... Seems like Turbo Tax has a problem with this, asking for the tax filer to look in the incorrect places for the amount... Somebody needs to tell Intuit to modify their interview information... Or is this a new, recent change in tax laws? I plan to start a new thread for this to revitalize it...
My 2017 carryover losses are automatically entered on line 19 of Sch E as an other expense and I cannot edit this expense entry during the interview . The resulting loss is then added again to the 2017 carryover. The 2018 carryover now contains the 2017 carryover twice. How do I fix this?
I have two rental properties that we also use in part as vacation homes. Both have passive loss carryovers from prior years. On one of the properties the program does not allow me to enter the passive loss carryover but instead asks for expenses not allowed in prior years that shows up directly on Schedule E Line 19? I believe the correct treatment is as a passive loss carryover on Form 8582----how can I get these entered correctly for the second property?
After finding Unallowed losses, Form 8582, Worksheet 6, Column b to enter into Schedule E
passive activity losses on line G, Schedule E Suspended Loss,
Now Turbo Tax Premier 2019 asks for At Risk Operating Loss, so how to calculate that number ?
There is no mortgage on either rental property.
There have been extensive repair costs.
Thanks in advance.
An "At Risk Loss" would occur if you had a loss on the property and you were not "At Risk" up to the amount of the loss. To be at risk, it means that your basis in the properly is less than the losses the properly is generating.
You basis is basically what you invested in the rental activity, plus any income you reported on your tax return over the years, less losses that you deducted.
So, you would have to do a basis calculation to determine what your at risk loss is. It would be the amount of your basis, if it was negative.
Here is an article on how to calculate basis:
where would I find the AMT Carryover from the previous year?
What happens if you don’t enter anything ?
In prior years, my husband has been doing our returns assuming TurboTax is carrying forward this information and automatically entering it where it needs to be. During the interview on TT2021, it asks if any of these situations apply: second from the last I believe was passive losses , which we did have according to the definition and explanation. The next screen wants me to enter something under “Regular tax” : is this current year PAL from schedule E (loss or profit). And than PAL carry overs from prior years as the last entry im that box which I can take from the federal form for PAL correct?
If so, why isn’t this information populated automatically or is it?
thanks
Yes, you need Form 8582 from your 2020 tax return to enter your passive loss carryover. If the box is blank then TurboTax is not entering the carryover for you. Be sure to enter the amount from Part VII, page 2 Form 8582.
So, is this requirement to enter in your passive loss carryovers new in this section? Form 8995 carries over the passive losses from year to year and accumulates correctly.
Does this mean I have to go back and amend all of my returns? How does NOT entering this information here affect my tax liability, because again, it shows up in From 8995.
Thank you
@pyropinup If your passive loss carryover is correct then you have no need to go back and amend prior year returns.
Hi Robert... just to make sure I understand correctly, are you saying that if the passive losses carryover correctly in Form 8995, that I don't have to click the button that was in the post from MJMann ( the one just prior to my post) and enter it there?
Thank you for your guidance.
Jeanne
Hello -
This is what I have on Form 8582, worksheet 5 (2020):
Name of activity | Form/schedule line number| a) loss |b) ratio | c) unallowed loss
xyz | E ln 22 | $15045 | .5616 | $6896
How do I enter this $6896 as unallowed loss?
in the interview, TT is asking for "Regular Tax carryover".