Passive Activity Loss Carryover

[H4T3m4t2]

On Form 8582, line 1c (Prior years' unallowed losses), it's blank,

but on line 3b, Form 8582 (Activities with net loss), there is an amount (this is the same amount found on Schedule E,  line 21, but shows as a negative number).

Also on line 3c, Form 8582 (Prior years' unallowed losses), there is an amount, but at the very end of Schedule E (Total Rental Real Estate Income or loss), there is a 0.

Where do I find the correct amount to enter under Passive Activity Loss Carryover.  Am I allowed to enter in a carryover if I only have one rental that is not going to be sold and is continuing to be rented?

[Mike9241 · Accepted solution]

1c is for active participation PAL carryover from real estate.  

line 3 is for passive activities other than real estate with active participation.

with net passive losses, nothing will be allowed. current year losses add to the carryover

[H4T3m4t2]

Thanks for the quick reply and clarification!