I don't want to take a Passive Activity Loss (form 8582) and I've answered all my questions correctly but TT still thinks I want it?

[JohnB5677]

We'd love to help you complete your tax return but need more information. Can you please clarify your question?

• Why would you not want to take a passive loss?
• Do you not feel that you're entitled to it?
• Do you have a rental property that shows a loss?
• If not, what activity had the loss?

[davidheupel]

I'm sorry I wasn't very clear.  I didn't have any passive losses on our rental property and I'm not sure my TT thinks I do.  There is a question in the software about having previous losses and I answered no after I saw the losses on form 8582 but the said losses still appear after changing the answer.  It appears I can Delete form 8582, will that also update all the references to the losses that refer to them?  I hope that explains a little better.

[DianeW777 · Accepted solution]

Yes, you can delete the Form 8582.  If there are no carryover losses and you have not sustained a loss on your rental property in 2022, this should clear up your return.

You'll need to delete this form 8582. 

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax CD\Download software and need to delete a form, click here. 

Use the steps below to check your answers:

TurboTax Desktop:

1. Open your TurboTax Return > Search (upper right) for rentals the Click the Jump to... Link.
2. Edit beside your rental property > Update beside General Property Information
3. Continue to the screen 'Do Any of These Situations Apply to This Property?'
4. Select the checkbox next to 'I have passive activity real estate losses carried over from a prior year.'

TurboTax Online:

1. Open your TurboTax Return > Search (upper right) for rentals the Click the Jump to... Link.
2. Edit beside your rental property > Scroll to 'Less Common Situations' > Review or Edit beside 'Carryovers, limitations, at risk info, etc.'
3. Continue to be sure you did not select