☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Apr 8, 2025 10:16:59 AM

Applying previous year Disallowed Passive Loss to current year as allowed passive loss

Can I apply a 2019 Disallowed Passive Loss return (Schedule E carryover worksheet from previous years) as an allowed NOL in my 2024 return (carryover worksheet line 14a)?  I had forgotten about it and read it may be possible to apply previous losses to later years, but the terms “Disallowed” and “allowed” have me thinking I cannot apply it.

0 2 1174
1 Best answer
Expert Alumni
Apr 8, 2025 11:59:53 AM

You can use it offset passive income, if you have any, but you can't use it to offset non-passive income or investment income.  

2 Replies
Expert Alumni
Apr 8, 2025 11:59:53 AM

You can use it offset passive income, if you have any, but you can't use it to offset non-passive income or investment income.  

Level 1
Apr 8, 2025 5:32:38 PM

Thank you so much for the quick reply! Being it was a originally from our rental and now being reapplied to the same rental I believe it will be passive originally and now again. So I should be OK! Thanks so much this is a great news!