Question

Sale of rental property with passive losses

Forum|Forum|5 years ago
February 10, 2021
2 replies
0 views

I sold a rental property in 2020. I previously rented it for several years and have accumulated passive losses. I renovated the property in 2019/2020. It was not rented during this time. How do I enter this transaction so that the passive losses come forward to offset my income? I am new to the post so thank you in advance for any assistance. Was on the phone with TT Help Desk for over 3 hours and never received a response.

M-MTax

You can enter all of your carryover passive losses in turbotax but you have to do it each year......you can't skip years. So you would first carry you 2018 passive losses to 2019 and then to 2020.

ColeenD3

Are you saying that it was not rented at all in 2020? You will need to enter your sale in Sales of Business Property. Since there is no rental information to pull forward into the rental section where you otherwise might have recorded the sale, you will have to enter the information manually, including depreciation and passive losses on Form 8582.