Question

Carry over passive losses

Forum|Forum|5 years ago
February 22, 2021
3 replies
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I don't work primarily in real-estate. I have had passive losses that exceed my passive income since I started acquiring my rental properties (about 4 years ago). I never carried forward old losses to the next year...mainly because I had no passive profits to offset.

This year (first year showing profits on paper) I am trying to carry forward losses from last year. TT generated no form 8582 for the 2019 tax season. Looking through last years return...looks like TT (which I have used for a very long time) has been accumulating my passive losses on form 8995. ..but that's really not the number I want to use...just want to use my 2019 passive losses. The losses for 2019 shows up on line 22 of schedule E in my 2019 TT tax returns.

I do my taxes each year as an interview (step-by-step view) with the "premier" version of TT that I download and install (NOT the online version).

When it asks me if I had carryover losses from last year and I select it, it does not automatically import data from my 2019 taxes.

There are three blocks that are blank. Regular tax carryovers, AMT carryovers, and QBI carryovers.

Is line 22 of schedule E the numbers I should be using for my carryover (two properties in 2019, both with losses)?

Does this amount go in the "Regular Tax Carryover" box?

Line 22 is the amount I put in, and I put it in the regular tax carryover boxes for both properties...but when I do this, the increase in my tax refund amount exceeds <my tax bracket> x <net passive income from rentals>...which makes me think I am doing something wrong.

M

MAK70

No, You should look on your Form 8582. Noncorporate taxpayers use Form 8582 to:

Figure the amount of any passive activity loss (PAL) for the current tax year.
Report the application of prior year unallowed PALs.

A

AmeliesUncle

If your total income was below $150,000, your rental losses may have been allowed to be used against other income. Look at Line 22 of Schedule E.

If it the losses were not able to be used, there WILL be a Form 8582 on the tax return that had that rental loss.

Carl11_2

Employee

just want to use my 2019 passive losses.

You don't get to pick and choose on this. If you show a gain, then you must use the carry over losses from prior years until it gets your taxable gain to zero. If any loss still remains, then it gets carried over. If no loss remains, then you have no carry over's to the next year. It's all or nothing, and nothing really isn't a choice.