Yes. If you have passive losses, from Schedule E, they carryover to the following year.
Passive Activity Losses (PALs) not allowed in the current year are carried forward until they’re allowed either against passive activity income; against the special allowance, if applicable; or when you sell or exchange your entire interest in the activity in a fully taxable transaction to an unrelated party.
so why does turbo tax ask me if I have passive loss carryover when I used turbo tax in the previous year. What should my answer be? Do I have to go look at the previous year schedule E to answer that question?
@ronddavidson If the IRS did not adjust your numbers, then you can just verify the numbers exist, no need to go back and look at the same numbers.
If the IRS or you adjust how you handle things, then an adjustment is available, if needed.
TurboTax is carrying over and using up $25,000 of prior year passive losses to current year income of $0. For example, 30,000 of prior year losses became $5,000 for next year af6t6er $25,000 was applied to $0 net income. Why?
Are you trying to use the incomplete 2022 program ??? If so you will need to wait until the program is fully operational next year for it to work properly. Click on the REVIEW tab to see what forms are not yet functional in your return and the ESTIMATED date they will be ready.
2019 Turbotax used 25,000 of s corp passive loss carryover on $0 net income and deducted 25,000 from my 2020 passive loss carryover balance, e.g, 37,000 passive loss carryover in 2019 became 12,000 in 2020. Why would 25,000 be applied and used up on $0 net income in 2019?