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New Member
posted Apr 11, 2024 9:06:58 AM

Do I have to use all of my passive activity loss carryover which were unallowed in previous years but are now allowed under the special provision?

I have a rental property.  Over the past few years, I have accumulated a Passive Activity Loss (PAL) that has been deferred because of my income.  I have retired  and my income has reduced drastically, to the point of where I can use this years PAL but also can use some of the carryover (I am an active manager of the rental property).  BUT, TurboTax assumes that I want to apply ALL of the Deferred Carryover.  Is there a way to override this (looks like I can in Schedule E worksheet, but not sure if that keeps the balance in reserve) and save some of the deferred for future years or for when I dispose of the property?

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1 Replies
Expert Alumni
Apr 11, 2024 3:14:10 PM

No, you are required to use the passive loss carryover in the current year to the extent you are allowed to .