- I bought a house in year 2000, immediately rented it for about 16 years
- Stopped renting in year 2016 and left it vacant for the next 8 years. I kept track of the unused “passive loss carryover”, which was considerable. During the vacant years I did a lot of home improvements (not repairs or maintenance), which would add to the original basis.
- Now in 2024 I have started renting again.
Turbotax does not have my specific scenario. On the page “which situations apply to this property”, I checked two items: “converted from personal to rental” and “passive losses from prior year”. This allowed me to enter the passive loss carryover from 2016, as well as deductions for this year 2024. But there is no provision for adding the cost of home improvements incurred in the intervening vacant years. No form 4562 was generated from which I could keep track of the passive loss carryover. Also, I was never queried about the initial value of the rental, when it was bought etc. Are there any options in turbotax premier for handling this?
