Question

How to add a suspended passive loss to 8582 for a property not rental anymore

Forum|Forum|2 years ago
March 24, 2024
1 reply
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I have two properties: property A was a rental before with suspended passive loss, but is now a primary residence. Property B is a rental property with positive rental income. TurboTax doesn't allow me to add property A to Schedule E or 8582 because it says it's not a rental property. Then how can I (manually) add the suspended passive loss from Property A (as a separate property) to 8582 to offset my positive rental income from Property B? Thanks!

Rental Property

M

Mike9241

three options

1) put the residence back on schedule E (description rental converted to residence) but no data except these items - check the active participation box, enter the passive loss carryover in that section days rented 0, personal use 0

2) put the pal c/o on the new property. this may create issues should you convert your residence back to rental

3) keep track outside of Turbotax and then enter only the usable PAL c/o in the pal c/o section of the new property until its used up. This would have to take into account any special allowance if your AGI is below $150K

I favor option 1.

there is no other place where Turbotax tracks PAL. c/o any override on the8582 prevents e-filing.

F

Frank666Author

Thank you @Mike9241 ! I've tried your option 1 with TurboTax, but after I entered 0 days rented. TurboTax will tell me since it's not a rental, it will remove my property from Schedule E 😞 Are there any ways I can manually add this property information to Schedule E / 8582?

M

Mike9241

did you also enter 0 days personal use both boxes are required?. i know of no other solution than what i provided. overriding 8582 and you have to file by mail.

I use desktop and get no errors in review but obviously i can't do the final step to e-file.