I have unused passive loss carryover from 2019 that I would like to use for my 2024 return but don't know where to enter it. This was a rental from 2008-2019 and then I converted to my primary since and sold it in 2024. I had a carryover loss and now that I disposed the asset, I could claim the loss correct? TurboTax did not import the carryover and I could not find anywhere to enter this unused amount. Please help. Thanks!
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Yes, you can claim the loss in the year you dispose of the house.
You'll need to set up a rental property in TurboTax to deduct the loss carryover. In the interview portion, indicate that you sold the property in the current year. On the page that says Do Any of These Situations Apply to This Property? check the box that says I have passive activity real estate losses carried over from a prior year. On the next screen you will enter the loss as negative number. You will need to indicate that you rented the property for the full year or TurboTax will delete your rental entry. Go through the rental entries but don't enter anything and the loss will be appear on your Schedule E when you are done.
Thank you for your reply. Would it be a problem if I said I rented out last year when I didn't. It was my primary since 2019.
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