Correcting prior year unallowed passive loss

Forum|Forum|3 years ago
April 5, 2023
1 reply
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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.

TurboTax Home & Biz Windows

Best answer by ThomasM125

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.

ThomasM125Answer

Level 15

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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