Question

TT Business - How to enter Form 8582 passive activity loss from prior years

Forum|Forum|3 years ago
January 13, 2023
1 reply
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I created a LLC to manage my rental properties and have passive activity losses from prior year years on Form 8582 on my personal taxes. How do I transfer them to Turbo Tax Business when the rental properties are moved to the LLC. Or do I have to retain the passive losses in my personal tax filings and not transfer them to the TT Business . I do not see an equivalent of Form 8582 in TT Business

TurboTax Business Windows

Critter-3

Stop ... did you incorporate the LLC with the feds (since an LLC is a state designation ) ? Did you get the EIN as a corporation and was told to file an 1120 by the IRS ?

If you did not incorporate with the feds .... Is this a single member LLC or a multi member LLC ? Has the rental been reported on your personal return on a Sch E in the past ?

And was this corp just to MANAGE the rentals or did you actually transfer ownership to the corp ?

K

kancAuthor

Hi @Critter-3 - Yes I did incorporate the LLC and have an EIN. It is a multi-member LLC with my wife and me. The rentals were reported on a Sch E in the past years and also have form 8582 passive loss that carried forward. I also transferred the loans to a Business loan and moved the titles of the properties to the Business. While entering Business taxes for this LLC I am not seeing the option to transfer the passive loss anywhere and am concerned that I might lose this as the property will now fall off from my personal taxes as the income and expenses are reported on the K1 and it is not recorded on my TT Business tax for the LLC. I am using TT Business for the LLC and TT Premier for personal taxes. I would really appreciate a response if anyone has addressed this situation.

K

kancAuthor

@DianeW777 and @mglauner and others who have responded to similar posts. Can anyone help answer the question I have above. I am trying to make sure I do not lose the passive losses I could not take on two properties in prior years that I used to manage in my personal taxes as rental properties that I moved to an LLC and am trying to fill out the business taxes and generate K1 instead. I do not find anyplace to enter the passive loss caryover amounts and if I delete the properties in my personal accounts as I have K1's now, I fear that I will not be able to have TT remember the passive loss. Also I have a passive income for one of the properties in my business taxes and this is showing as a gain as i have no way of entering the carryover losses from prior years