form 8582 "allowed loss" limitations. I have been using up valuable carryover passive activity losses when my net income is less than my standard deduction, married filing jointly. Current year Schedule E real estate rental losses do not offset current year Sch E gains, and my prior year's PAL carryovers are eaten up offsetting Gains in full before my standard deduction even kicks in. FORM 8582 calculations that feed into Schedule E lines 22, 28 and Form 4797 (going to Schedule 1 pt 1 ln 4), are these 'allowed loss' limitations deduction LIMITS or fixed amounts that must flow thru to the other forms unaltered? or can i override Schedule E lines 22 and 28 with ZERO, in effect, not take the allowed loss deduction, and carryforward the Unallowed Loss plus Allowed losses to next year's beginning balance for PAL carryovers? Thank you.
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No. there is no election to defer the allowable passive loss deduction as calculated on Form 8582. however, you could have a Net Operating Loss (NOL). Turbotax has no provision to compute this. Thus some of your PAL loss could become an NOL carryforward.
to determine if you have an NOL use:
form 1045 schedule A
orhttps://www.irs.gov/pub/irs-pdf/f1045.pdf
or the worksheet in PUB 536 page 12
Thank you @Mike9241
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