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February 5, 2023
Question

I have been using turbo tax since i purchased rental properties 5 yrs ago. How can i know what the accumulated depreciation and losses are?

  • February 5, 2023
  • 2 replies
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how long can one carry forward losses?

2 replies

February 5, 2023

For your depreciation question you should have a Depreciation Report in your tax return under your asset that has that info. Form 4562 Depreciation and Amortization Report. 

PatriciaV
Employee
February 6, 2023

As lmsygirl said, depreciation is shown on Form 4562 Depreciation and Amortization report in TurboTax. Note that total accumulated depreciation as of the end of the tax year is the sum of Prior Depreciation and Current Depreciation as shown on this report.

 

Any Passive Loss Carryovers appear near the middle of Schedule E Wks after QBI & Sch A worksheets: Carryovers to 20XX Smart Worksheet. This is a TurboTax supplemental schedule and not an IRS form (most tax preparation programs produce similar worksheets).

 

If you had more than one property, need to identify which activity generated the loss, or you didn't use TurboTax last year, Passive Loss Carryovers appear on Form 8582 Page 2 Part V. For AMT, look for the same form with "ALT MIN TAX" under the form title.

 

If you do not have enough passive income to offset these losses on your current tax return, the losses are carried forward to future tax returns until 1) they offset Passive Income or 2) you dispose of the rental properties.

 

For more information, see: IRS Tax Topic 425 - Passive Activities - Losses and Credits

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