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How do I carryforward my 2017 passive activity real estate losses into my 2018 tax return?

Forum|Forum|7 years ago
June 1, 2019
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In 2017 I rented out a condo unit. In December 2017 the tenant moved out. On January 1 2018, I (owner) moved in. When I rented the property in 2017, I had passive activity real estate losses. I lived in my condo unit for all of 2018. I did not rent my condo in 2018. I was the only owner of this property and qualify as an active participant. I am not a real estate professional.

How do I carry forward my 2017 passive activity real estate losses into my 2018 tax return?

TurboTax Deluxe Windows

Best answer by Coleen3

You don't. Once you moved in, it ceased to be rental property. Keep the amount handy for when you sell the property. You can't realize your loss until you sell. Print Form 8582 and the keep a note of both the loss and the depreciation taken and delete the property from the rental section

C

Coleen3Answer

Employee

You don't. Once you moved in, it ceased to be rental property. Keep the amount handy for when you sell the property. You can't realize your loss until you sell. Print Form 8582 and the keep a note of both the loss and the depreciation taken and delete the property from the rental section

M

monumaAuthor

Thanks for the quick response.
I was afraid someone was going to tell me I need to keep a hardcopy of my passive activity losses. I *was* hoping TurboTax and/or the IRS would have a form that I would fill out each year to keep a running total of my PAL and depreciation.
I hope the IRS believes me when, 15 years from now, I sell my condo unit.
That said, I just wanted to clarify when I can realize my loss. Can I realize my PAL in a future year if my MAGI is between $100k and $150k in that (future) year?