I went though this yesterday. If you don't want to claim the loss as a deduction this year, you won't be able to delete the amount or the form if you are completing your taxes using turbotax online. After chatting with a turbotax rep for about an hour online, she suggested I download the desktop version and it would allow me to delete the amount. The other option is to re-start your 2010 return WITHOUT importing any information from 2009. I downloaded the desktop version, started from scratch and was just fine.
Section 465(d) Carryover relates to "Passive Activity Losses and Credits and At Risk Losses to Bankruptcy Estates of Individuals".
SUMMARY: This document contains final regulations relating to the application of carryover of passive activity losses and credits and at risk losses to the bankruptcy estates of individuals. The final regulations affect individual taxpayers who file bankruptcy petitions under chapter 7 or chapter 11 of title 11 of the United States Code and have passive activity losses and credits under section 469 or losses under section 465.
DATES: These regulations are effective May 13, 1994. These regulations apply to bankruptcy cases commencing on or after November 9, 1992. In addition, the regulations apply, at the election of the affected taxpayers, to cases that commenced before, and end on or after, November 9, 1992.
FOR FURTHER INFORMATION CONTACT: Amy J. Sargent of the Office of Assistant Chief Counsel (Income Tax & Accounting), Office of Chief Counsel, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 20224, or telephone (202) 622-4930 (not a toll-free number).