Passive Activity Loss Carryover

Forum|Forum|3 years ago
March 20, 2023
2 replies
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My 2021 return had rental losses that I could not use in 2021. The information was correctly included on form 8582 and the related worksheets for 2021. I converted the property (in 2021) to my full-time residence and thus did not use Sched. E on my 2022 return. I deleted all sched. E forms from my 2022 return to overcome two TT errors that prevented completing and filing my 2022 return. The PAL data was thus lost and I wish to amend my 2022 return to continue carrying these losses forward until such time as they can be used since I currently have no other passive activities. I have spent hours on TT attempting this amending process but I cannot locate form 8582 as a stand-alone form for amending. Can someone please guide me?

Carl11_2

Employee

If you converted the property to personal use on the 2021 return, then you have no need for SCH E or any of it's supporting documents on your 2022 tax return. Everything you need for anything in the future, is on your 2021 return. What you need to do, is print out the two landscape 4562's and the IRS Form 8582 from the 2021 return and keep those printouts in a safe place. You will need them for reasons I'm sure you're already aware of, when one of three things happens in the future.

1) You convert the property back to a rental or any other type of business use.

2) You sell the property

3) You die.

Mike9241

I also recommend keeping a second copy somewhere other than on that one computer. maybe a thumb drive or even a paper printout. there have been more than a few posts from taxpayers who have irrevocably lost that needed data either because the hard drive failed, malware, or they change computers. Turbotax Online and the iRS only keep copies for 6 or 7 years after that they're gone permanently. Turbotax does not have copies of desktop prepared returns.