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March 12, 2025
Question

Keeping track of Disallowed losses on Rental Property

  • March 12, 2025
  • 1 reply
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My MAGI is too high to allow for claiming losses on rental property.   My understanding is that those carry over until you can use them to offset gains, when you sell or when your MAGI meets the threshold.    I also don't see the historical losses carry over in Turbotax.  Is there a worksheet in turbotax that ports over the disallow losses from historical years?  Not sure if I am doing anything wrong here , where should I look?

1 reply

March 12, 2025

Yes, but it is not a worksheet, it is a tax form that is filed with your tax return.  Your unallowed passive activity losses (PALs) flow to, and are tracked on Form 8582 - Passive Activity Loss Limitations.  

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