Recapture of disallowed passive loss on the sale of house

Forum|Forum|5 years ago
February 20, 2021
3 replies
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I filed a Form 3115 in 2018 for depreciation that I had not accounted in the 6 years prior. I had passive loss of $39,630 which included $35,630 for catch up depreciation and some of the 2018 depreciation and other expenses. Due to income limitations, the deduction was disallowed. What form do I have to fill out to recapture the disallowed amounts?

TurboTax Home & Biz Windows

Critter-3

The missing depreciation should have been reported on the Sch E which would have automatically generated the 8582 in 2018 which will carry forward until you can use the loss.

xx01632Author

Critter, It was reported and and did carryforward. It all showed up as it should as I continued on the return. Thank you for your help.

Mike9241

in the year you sell the property, the cumulative disallowed passive losses become a deduction not subject to the PAL rules.

bobby runner

Employee

if i sell rental property where I had had passive losses for several years, that were non deductible, and I sell the property, where do I enter such losses in the year of sale; or does Turbo Tax do it automatically

Mike9241

Turbotax keeps track of the suspended passive losses and upon complete disposition (you got to check that box) you should see it automatically reported on schedule E page 1 on line 19