Question

Qualified business loss carry forward from Rental property

Forum|Forum|5 years ago
February 10, 2021
1 reply
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I had rental property that I converted to personal use in 2020. I also had qualified business losses from prior years. Where and how do I clam those losses?

Not A Product Question

ColeenD3

You don't. Any passive losses are stored on Form 8582 and are realized upon the total disposition of the property. Keep your forms until such time as you sell.

Dispositions

Any passive activity losses (but not credits) that haven’t been allowed (including current year losses) are generally allowed in full in the tax year you dispose of your entire interest in the passive (or former passive) activity. However, for the losses to be allowed, you must dispose of your entire interest in the activity in a transaction in which all realized gain or loss is recognized. Also, the person acquiring the interest from you must not be related to you.

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