Manually recording previous years suspended passive activity losses when rental converted to personal use

Forum|Forum|7 years ago
June 1, 2019
13 replies
140 views

"I converted a rental to personal use in 2015. 2016 TT return correctly carried forward 20K passive loss from 2015. Since not rented in 2016 and I checked option to never tried to rent, TT removed rental property from schedule E and removed suspended loss from 8582. If in future years I convert back to rental or sell do I have to manually keep a record of previous years passive loss?

TurboTax Online

Best answer by view2

manually keep a record of previous years passive loss?

Yes

If you have no other passive income, the suspended losses remain suspended. Carry them forward until you sell the home in a fully taxable transaction.

Or to rental.

A former passive activity is any activity that was a passive activity in a prior tax year but is not a passive activity in the current tax year. A prior year unallowed loss from a former passive activity is allowed to the extent of current year income from the activity.

view2Answer

Level 8

manually keep a record of previous years passive loss?

Yes

If you have no other passive income, the suspended losses remain suspended. Carry them forward until you sell the home in a fully taxable transaction.

Or to rental.