Passive losses on a residential rental property sale

Forum|Forum|4 years ago
May 30, 2021
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I sold a residential rental property in 2019 and the passive losses made my 2019 AGI go negative. Can I carry the remaining loss over to my 2020 taxes? If so, how do I do that as I didn't see anywhere on Schedule E or on my 1040 to do that.

Not A Product Question

Anonymous_

A loss on the sale of rental real estate has the potential to generate a net operating loss (NOL).

TurboTax does not support the calculation of an NOL; you need to do that manually and then determine whether to carry the NOL back (up to five years) or carry it forward.

See https://www.irs.gov/publications/p536#en_US_2020_publink1000177330

Joseph00Author

Thanks for the response!

I read the IRS link you provided in your response. The losses that I had when I sold my residential rental property, I had passive activity losses. In the document you linked to, I only saw references to capital losses. Do the passive losses from my residential rental property become capital losses when I sell the property or are they the same as capital losses?