Question

Carryover from Prior Year on rental property

Forum|Forum|4 years ago
April 6, 2022
1 reply
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This is my first year using Turbo tax. I found my carry over from Schedule E from Prior year, and input in the first screen under carry over, and then input in the 3nd screen on by year allocation. Coming to the third screen, on uncommon activity, one of the options are if I have carryover loss from prior year that is at risk?

I thought all the carryover loss are at risk. So I clicked on it, it became my current years expense. Is it right?

Not A Product Question

D

DianeW777

Yes. If your investment in your rental is completely at-risk you want to be sure to answer the question correctly.

Most importantly the 'at-risk' question wants to know if you have money invested that you are not at-risk for. Example: I have money invested in this business that I'm not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss.
You can use this link to become more familiar with what 'At-Risk' really means: Is my investment at-risk?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

M

mayxieAuthor

Ok, so I clicked “ this property has at risk losses carry over “.

Then.

the “at risk” carry over loss show up as miscellaneous expense for current year on the work sheet? Is this accurate?

Also, in the worksheet, the allowed loss seems doubled counted the end. Ver perplexing.

D

DianeW777

Yes, if you have an 'at-risk loss carryover' then you will enter that It's important to be sure you are selecting the right loss carryover. If it's a passive loss carryover from Form 8582 for your rental it makes difference versus an 'at-risk' carryover.

The 'at-risk' loss carryover will be listed as 'Other Expenses' on the Schedule E. I do not see a double entry on the worksheet in my example. You could try to remove it, then close TurboTax. Clear cache and cookies and then reopen and add the loss again to check it.