topic Carryover of Real Estate Losses in Investors & landlords

Carryover of Real Estate Losses

hew204 — Wed, 03 Mar 2021 10:09:06 GMT

In 2019, I had an AGI of around -9k due to the foreign earned income exclusion and a real estate loss. The real estate loss was such that I was exempt from submitting an 8582. I am now filing for 2020 and once again was able to fully exclude my income due to the foreign earned income exclusion and have a real estate loss of around 17k, resulting in an AGI of around -17k. Would I need to carry forward my 2019 loss of 9k into 2020, resulting in an accumulated real estate loss of 26k (9k+17k) and thus, triggering the need to file an 8582? If so, how and where do I report the prior year 9k loss on my 2020 return?

Re: Carryover of Real Estate Losses

DaveF1006 — Wed, 03 Mar 2021 23:04:44 GMT

It depends. If you filed with Turbo Tax in 2019, that carryover should have been performed automatically. Here is how to report.

Click the Federal Taxes tab. Federal is using the online version.
Click Wages & Income or Income and expenses if using Online
Scroll down to the Rental Properties and Royalties section
Click the blue Show More in this section
Click Start (or Revisit) next to Rental Properties and Royalties (Sch E)
Click Yes
Click Continue
Click the blue Edit button next to the rental you'd like to add info for
Click Continue until you reach the screen entitled Do any of these situations apply to this property?
Scroll to the bottom of this page and check the box next to I have passive activity real estate losses carried over from a prior year. (see first attachment for reference)
Click Continue
You'll be able to input the carry over amounts on the next screen

Re: Carryover of Real Estate Losses

hew204 — Thu, 04 Mar 2021 03:44:08 GMT

Thank you. That got the prior year's loss into my return. I now see that a 8582 is being populated with my prior year loss of -9k being shown as an "unallowed loss" on worksheet 1 line 1c. This loss was not unallowed per se, I just didn't have any income to deduct it against so it wasn't used in 2019. As such, would it still go here?

Re: Carryover of Real Estate Losses

DaveF1006 — Mon, 08 Mar 2021 19:51:17 GMT

Yes, you will still report it. Think of it as a holding tank to offset future income rental income.