Form 8582 and Schedule E dealing with passive loss carry forward

Forum|Forum|3 years ago
April 13, 2023
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I am trying finish my 2022 return. I have had the same carry forward loss on Form 8582 since 2014. Every year, I would go through the Schedule E questions. This year I entered 0 rental days and 364 personal days. This would result in an error message that told me to delete Schedule E. I looked at my old Schedule E's and noticed that I entered 0 rental days and 0 personal days and got the proper Form 8582 entry for my carry forward loss.

I'm confused. What am I doing wrong? Which is the proper way to tell TT to continue tracking the loss until I sell or convert it back to a rental property?

Mike9241

so you converted rental property to your personal residence. then keeping track of suspended passive losses cost and depreciation taken when it was a rental are your responsibility. you were suppose to delete schedule E for it since it is no longer was a rental. then when you sell that info will have to be entered.

Anonymous

Do I keep the last viable copy of Form 8582 p1 with the current years taxes? Or, can I fill out just Form 8582 p1 on TT H&B 2022 and every year until the loss and depreciation is used?

AmeliesUncle

TurboTax is negligent in this situation.

The IRS Instructions clearly tell you that you should continue to file Form 8582 every year. But TurboTax incorrectly won't do it unless you also file the passive activity (Schedule E).