Form 4562 does not contain my rental loss for 179 carryover

Forum|Forum|2 years ago
March 23, 2024
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I have a significant loss on one of my rental properties. It is large enought to offset the income from the other properties (just three total). I look at the Sch E form 4562 for the offending property expecting to see information about the amount to be carried forward to next year under Section 179. However, I don't see anything like that. Can you help my understand what is happening?

Best answer by Mike9241

is there an amount on line 6 of the 4562. should be the 179 info

if not go back to your entries for the asset and review them. if this does not solve the problem tell us what you entered - amounts are not needed.

Mike9241Answer

is there an amount on line 6 of the 4562. should be the 179 info

if not go back to your entries for the asset and review them. if this does not solve the problem tell us what you entered - amounts are not needed.

okrandyAuthor

Thank you.

Ok, great answer but maybe I am missing something. Let's start over. Big loss this year due to remodeling at a rental. Would like to carry forward the losses that are not allowed this year. How do I make sure that happens?

LeticiaF1

One thing you would check is how the remodeling expense was entered. When you have a rental property and you do repairs, maintenance, and improvements to the house, there are some things that you can expense on the same year, and some that will need to be depreciated and expensed overtime.

Things that you can usually expense on the year it happens are usually repairs and maintenance:

Fixing a water leak
Painting
Repairing appliances

Things that will need to be depreciated over time are capital improvements:

Remodeling a kitchen
Getting new appliances
Replacing a roof, siding, windows
Installing a new furnace

If any of the things you did to the house would be considered capital improvements you should depreciate those expenses rather than expense the whole amount in one year. Doing this will reduce your current year loss, and adding depreciable assets to your rental property will also increase the cost basis of your property. Increasing the cost basis of your property will help when you decide to sell it.

If you would like more information about rental properties see the following TurboTax help articles: