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Correcting prior year unallowed passive loss

I received a form 8986 making a correction to the ordinary income in 2019 for a partnership that to date has only generated passive losses that have been unallowed.   The correction reduced (but did not eliminate) the 2019 loss.  I have produced form 8978 (and the associated Schedule A and the statement of how I calculated the adjusted tax due, which was 0) to file with my 2022 return.  However, I cannot figure out how to correct the prior year carry-forward of my unallowed passive loss on Form 8582 on my 2022 return.  Should I be making the correction somewhere else?  If so, where / how?  Thanks for any help.

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1 Best answer

Accepted Solutions
ThomasM125
Expert Alumni

Correcting prior year unallowed passive loss

When you enter your K-1 schedule for the partnership in TurboTax, you will come to a screen that says Describe the Partnership and you need to choose the option I have passive activity losses carried over from last year.

 

Later, you will see a screen where you can enter or adjust your passive loss carryovers from the prior year. Those entries will transfer to your form 8582.

 

 

 

 

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2 Replies
ThomasM125
Expert Alumni

Correcting prior year unallowed passive loss

When you enter your K-1 schedule for the partnership in TurboTax, you will come to a screen that says Describe the Partnership and you need to choose the option I have passive activity losses carried over from last year.

 

Later, you will see a screen where you can enter or adjust your passive loss carryovers from the prior year. Those entries will transfer to your form 8582.

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Correcting prior year unallowed passive loss

@ThomasM125 - Thank you!  That did the trick.  Your help is much appreciated.

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