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posted Aug 16, 2024 6:52:33 PM

Form 8582 Passive Activity Loss Limitations: Active Participation is not recognized

Prior to 2022 taxes, I utilized Turbo Tax.

For 2022, an accountant completed by taxes: 

  • The appropriate documentation was provided to IRS that I have a single real estate activity for 2022 and subsequent tax years as well as I made the de minimis safe harbor election.  2022 was the first year I was considered with active participation.  
  • Form 8582 Part I Items 1a through d "Rental Real Estate Activities With Active Participation" were completed
  • Form 8582 Part II  "special allowance for rental real estate activity with active participation" section was completed.
  • Form 8582 Part IV was completed

Turbo Tax 2023:  it appears Turbo Tax doesn't think I have active participation instead it completed the form as passive.

  • Form 8582, Part I Items 2a through d were completed "All Other Passive Activities" 
  • Form 8582 Part V was completed.

Since my first year as a real estate professional was in 2022 and did not use Turbo Tax then, there must be a trigger field that I must complete for 2023. 

All help is greatly appreciated.

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