how do I deduct 2019 passive income loss against a 2020 gain?

[chrigi]

I have a rental property and reported a loss to carry over in 2019. Made some profit in 2020 but I can't figure how to deduct that loss from my income, any idea?

[ThomasM125]

When you start to enter your rental property, you should see a screen that says Do Any of These Situations Apply to This Property? One of the choices is to indicate that you have a passive loss carryover from the previous year:

Once you check the passive loss option, you will see another screen that asks for that amount.

[chrigi]

Thank you so much, I have added that carryover but it doesn't factor it in, my 2019 loss was bigger than my 2020 gain so I assume my net income should show 0?

[Irene2805]

Yes, your net income on the Schedule E should be zero.   Remember to enter the loss carryover as a negative number.

If you marked the box for Active Participation in the property rental  you would be allowed a loss of up to $25,000.  According to IRS Pub. 925 - Passive Activity and At-Risk Rules:

If you or your spouse actively participated in a passive rental real estate activity, the amount of the passive activity loss that’s disallowed is decreased and you therefore can deduct up to $25,000 of loss from the activity from your nonpassive income.

[chrigi]

it makes the number positive automatically, assuming it is considering it negative anyway, really weird

[chrigi]

ok, I figured, since I didn't use TT last year, I forgot to add the actual condo as an asset, that did the trick:)

One last question on the carryovers, am I putting the amount in all three boxes?:

Sch E - Regular Tax Carryovers

Sch E - Alt Min Tax Carryovers

Sch E - QBI Carryovers

[AmyC]

Yes, you need all 3 amounts filled in for a complete and accurate carryover. These may or may not be the same number. Moving forward, a worksheet will show the amounts.