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britamoe
New Member

Where do I see the loss on a rental caried over from last year? Will that automatically be incorporated into this year return? Not a real estate professional.

 
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Coleen3
Intuit Alumni

Where do I see the loss on a rental caried over from last year? Will that automatically be incorporated into this year return? Not a real estate professional.

Your Passive Activity Losses are carried forward from year to year on Form 8582. https://www.irs.gov/forms-pubs/about-form-8582

Dispositions

Any passive activity losses (but not credits) that haven’t been allowed (including current year losses) generally are allowed in full in the tax year you dispose of your entire interest in the passive (or former passive) activity. However, for the losses to be allowed, you must dispose of your entire interest in the activity in a transaction in which all realized gain or loss is recognized. Also, the person acquiring the interest from you must not be related to you.

https://www.irs.gov/publications/p925#en_US_2017_publink1000104640 


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3 Replies
Coleen3
Intuit Alumni

Where do I see the loss on a rental caried over from last year? Will that automatically be incorporated into this year return? Not a real estate professional.

Your Passive Activity Losses are carried forward from year to year on Form 8582. https://www.irs.gov/forms-pubs/about-form-8582

Dispositions

Any passive activity losses (but not credits) that haven’t been allowed (including current year losses) generally are allowed in full in the tax year you dispose of your entire interest in the passive (or former passive) activity. However, for the losses to be allowed, you must dispose of your entire interest in the activity in a transaction in which all realized gain or loss is recognized. Also, the person acquiring the interest from you must not be related to you.

https://www.irs.gov/publications/p925#en_US_2017_publink1000104640 


Hal_Al
Level 15

Where do I see the loss on a rental caried over from last year? Will that automatically be incorporated into this year return? Not a real estate professional.

The disallowed  loss from  last year does NOT carry forward to this year. You cannot use it on your  2018 tax return. Instead, it is "suspended" until you actually sell the unit. You may claim the carry forward losses only in the year you sell the property
Coleen3
Intuit Alumni

Where do I see the loss on a rental caried over from last year? Will that automatically be incorporated into this year return? Not a real estate professional.

Form 8582 updates the loss each year if there is an additional loss. It carries forward on Form 8582.

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