Passive Activity Loss Carry forward

4 replies
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This is my first year using Turbo Tax. Last year my accountant carried forward a passive activity loss for property that I had stopped renting in 2020. I am not a real estate professional. Since I'm no longer renting the property, there is no need for Turbo Tax Business but I do not have a K-1 or other document other than last year's 1040. How do I enter the PAL into Turbo Tax?

Mike9241

Level 15

what happened to the property in 2020, if anything? the PAL gets carried over until the property is disposed of in a fully taxable transaction.

so if you remove schedule E, the PAL will disappear. you will have to keep track of it outside of Turbotax.

Mike9241

kysfAuthor

Level 2

We lived there for two years. Each year we have used the PAL to offset other passive activity income. There does not appear to be a way to add this to Turbo Tax (our first year using it) which would enable us to continue to offset the passive income.

I don't want to eliminate the Schedule E but Turbo Tax does not seen to allow me to input this info from previous tax returns.