Form 8582 - NOT TAKING THE LOSSES

[SRob888]

Hi.  I have rental properties that have losses.  Turbo tax is doing everything correctly.  On my form 8582 Part II it shows that I can take about $20k of losses from this year's income. This is correct.  HOWEVER, I don't want to take the losses against income this year. My tax rate this year is going to be 10% so the $20k in losses saves me $2k.  For next year's tax return I will sell my rental property and have a capital gain taxed at 15% so that tax savings from not using the $20k in losses this year and carrying forward this loss against the capital gain next year's taxes will save $3k (15% of $20k carry forward).  How do I get turbo task desktop to not take the losses that it is allowing on Form 8582 Part II.  Thank you.

[DianeW777 · Accepted solution]

It's not a choice. If you don't use the allowable passive loss this year, then you will lose it. It's not based on the year we would like to take it but rather the income in the year the loss is carried to or created in.

[SRob888]

Thank you.  I just did some additional research and confirmed you are correct.  Thank you.