passive loss carryover where to report

[UU1]

I used a CPA for my taxes last year 2020.  I sold my property.  I have an un-used carryover loss that

was reported on For 8995.  I now want to use TT Premier for 2021.  Where do I enter the carryover loss

in TT since I am starting from scratch this year?  

[JohnB5677]

Since you sold the property the entire passive loss should have flowed into your 2020 tax return, so I expect this was a carryover Capital Loss.

To correct Capital Loss Carryover:

1. Wages & Income

2. Scroll to Investment income

3. Select Capital loss Carryover

4. Make your corrections

You are allowed a maximum capital loss in any one year of $3,000, and any excess loss can be carried forward to future years to offset gains. Each subsequent year also has a maximum loss limitation of $3,000.

There is no limit to the number of years you can carry a capital loss forward. However, you are not allowed to carry a capital loss back to a year before the capital loss occurred.

[UU1]

Hello again,

I should have been more specific.  Our CPA included a 'Carryover Report' that shows a value in the 'carryover to 2021' column.  This same value shows up on line 16 of form 8995 total qualified business loss carryforward.

Is your answer the same as before?  Where do I enter this value in a new clean version of TT2021?  Thanks again.

[JulieS]

No, it would not be a Capital loss carryover.

It depends on what that 8995 loss was based. If it was based on the property that you sold, you don't need to enter it anywhere as the associated "business" doesn't exist any more. 

Can you clarify if you are self-employed, or own other rental properties?

[UU1]

Hi, Thanks for your answer.  I think.   I am retired and do not own any property or business since we sold

our rental property.  I remember reading that excess passive carryover losses can be used indefinitely up to

$3000 per year to off set any capital gains.  Since we sold our rental property we had $90K un-used losses.

I am not an accountant.  Please be kind.  Thanks.

[GeorgeM777]

In your first post, you asked about where to enter your QBI carryover loss.  If you are using TurboTax online, follow these steps to enter your QBI carryover loss.

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Income & expenses.
• Scroll down to Other Business Situations.
• Click Start / Revisit to the right of Net Operating Loss / QBI Carryforward Loss.
• Enter QBI Carryovers at the screen 2021 Qualified Business Income Loss Carryovers.

Your carryover QBI losses can only offset positive QBI.

@UU1

[UU1]

Thank you.