I have one rental property that I have owned for years. The last two years (2022 and 2023) I was not able to deduct the loss due to my income and the rental is passive and not a business. When preparing my 2024 return it automatically checked "I have passive activity real estate losses carried over from a prior year" Turbo tax automatically applied these carryover losses but did not fill in all the required information in the forms. I do not need to use this carryover loss and would like to just not carry it over. I tried unchecking the "I have passive activity real estate losses carried over from a prior year" check box and check the None of these apply check box. This did not remove the carryover losses in my return. Is there away to not have Turbo Tax automatically apply the carryover losses?
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It's not advisable to do that. When you sell the property in the future, this unallowed passive activity loss (PAL) will be allowed to be used to reduce any income on your tax return for that year. You get to use it all that year.
It's important to continue to carry it forward until that day so that you don't lose it.
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