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umaine001
New Member

Do I have to use all of my passive activity loss carryover which were unallowed in previous years but are now allowed under the special provision?

I have a rental property.  Over the past few years, I have accumulated a Passive Activity Loss (PAL) that has been deferred because of my income.  I have retired  and my income has reduced drastically, to the point of where I can use this years PAL but also can use some of the carryover (I am an active manager of the rental property).  BUT, TurboTax assumes that I want to apply ALL of the Deferred Carryover.  Is there a way to override this (looks like I can in Schedule E worksheet, but not sure if that keeps the balance in reserve) and save some of the deferred for future years or for when I dispose of the property?

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1 Reply
ThomasM125
Employee Tax Expert

Do I have to use all of my passive activity loss carryover which were unallowed in previous years but are now allowed under the special provision?

No, you are required to use the passive loss carryover in the current year to the extent you are allowed to . 

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