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jrfackler78
Level 1

Carryover of disallowed deduction on passive activity real estate loss

I had a loss on a rental property in 2018 of $15,526. Turbotax Home and Business says that $8,322 of that loss was allowed and $7,204 was unallowed. I filed as married and total income was between 100-150k so I understand that not all of the real estate loss is deductible against earned income.

 

My question is the non-deductible loss should carry forward but I don't see where Turbotax carries it forward. It is not on form 4562 or anywhere else in the PDF of my printed return.

 

Should my 2018 return have stated that I am carrying over a passive activity loss into 2019 or is the 2018 form 8582 stating that I had an unallowed loss all that is required to carry the loss forward into 2019?

 

When I file my 2019 return will Turbotax know that I had a passive activity loss that should be carried over?

 

Thank you.

5 Replies
tagteam
Level 15

Carryover of disallowed deduction on passive activity real estate loss


@jrfackler78 wrote:

Should my 2018 return have stated that I am carrying over a passive activity loss into 2019 or is the 2018 form 8582 stating that I had an unallowed loss all that is required to carry the loss forward into 2019?


The fact that you had a suspended (disallowed) passive loss on your 2018 return in TurboTax should be sufficient for that suspended loss to carry over to your 2019 TurboTax return as shown in the screenshot below (from the rental section Step-by-Step).

 

Note that you should also be able to view the figures in Forms Mode on Form 8582 and Schedule E.

 

pl.png

zenmster
Level 3

Carryover of disallowed deduction on passive activity real estate loss

I just got married in Sept 2019 and my rude awakening is that my refund as Married filing jointly (MFJ)  is about 80% lower than if Single still.

 

ny questions:

1. is for rental property I own renting at a  LOSS - TT says its no longer deductible. Does TT carry that over to when I sell my property and then I can apply the however many years of losses or is that $loss uh, lost forever?

 

2. also would it make sense to create an LLC and run my rental unit through that setup? More tax refund that way?  Thx in advance. 

zenmster
Level 3

Carryover of disallowed deduction on passive activity real estate loss

I I’m always using TT does that carryover automatically get carried to the next TT return or have to enter manually? 

tagteam
Level 15

Carryover of disallowed deduction on passive activity real estate loss


@zenmster wrote:

I I’m always using TT does that carryover automatically get carried to the next TT return or have to enter manually? 


Certain types of losses. such as suspended passive activity losses and capital losses, carry over automatically while losses such as NOLs (net operating losses) do not.

JimSFBA
New Member

Carryover of disallowed deduction on passive activity real estate loss

I have the same issue on my 2019 Passive Activity Loss.  TurboTax Premier does not show that you have a unallowed loss to be carried over to following years.  However, on Form 8582 (2019) page 2, you can find "Worksheet 3-For Form 8582, Lines 3a, 3b, and 3c....".  And a "Prior Year Unallowed Loss" can be entered there manually (if TurboTax does not transfer the prior year unallowed loss automatically.

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