I sold rental property in 2021 and schedule e has a value on line 22, but form 8582 is not being completed for TT. Does this form need to be filed for 2022?

Forum|Forum|3 years ago
March 4, 2023
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PatriciaV

Employee

If you sold the property last year, any passive losses should have been applied to the gain on the sale. You would not have a carryover to this year (Form 8582), nor would the property be reported (Schedule E) on your current year return.

If you still have Schedule E for that property, you may not have reported the sale correctly. To apply the passive losses, and eliminate the rental property, you may need to amend your prior year return.

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cyjenkinAuthor

I meant to say I sold the property in 2022. I rented the property for 2 months and then sold it. I see that the Schedule E reports the passive loss carryforward on line 22, but no form 8582 was generated by TT to support this value.

Carl11_2

Employee

If you sold the property in 2022, then there would be no carry over's to 2023. All suspended losses are released in the tax year you sell the property. Plus, if you sold at a gain, then most likely your PALs from prior years were all used up to offset the amount of taxable gain.

Carl11_2

Employee

If you reported this sale on your 2021 tax return, I can't see any valid reason why the property would appear on SCH E in your 2022 return. Maybe you did an installment sale? But I doubt it, as I'm sure you would have stated so, if that was the case.