Form 8582

[LGMK]

We sold one of two rental properties this year.  Turbo Tax automatically offset gains from the sale of the first property by prior years unallowed losses from the second property.  Is that appropriate, or did we fill something out incorrectly?

[Critter-3]

Ok ... this is where you really need to review the entire return carefully so you see what is affected by the release of the passive losses on the sold property.  The Sch E probably has a large enough loss which lowers your income enough   to allow some of the other captured passive loss.  

How do I preview my TurboTax Online return before filing?

You can view your entire return or just your 1040 form before you e-file:

1. Open or continue your return.
2. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
3. With the Tax Tools menu open, you can then:
• Preview your entire return: Select Print Center and then Print, Save, or Preview This Year's Return (you may be asked to register or pay first).
• View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.

[AmeliesUncle]

It is probably correct.

Passive Losses can be used against Passive Gain.

So when you sold the one property, you now have Passive Gains.  So the Passive Losses from the second property may be able to be used against those Passive Gains.