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?

A

AmeliesUncle

I have asked my previous CPA, and his answer is that I should be able to offset my property B positive rental income with the suspended passive loss from property A, and his suggestion is to add it to 8582, but the problem is that TurboTax doesn't seem to allow me...

@Frank666 wrote:
I have asked my previous CPA, and his answer is that I should be able to offset my property B positive rental income with the suspended passive loss from property A, and his suggestion is to add it to 8582, but the problem is that TurboTax doesn't seem to allow me...

Your previous CPA is correct.

You are correct that that TurboTax is faulty and just deletes the carryover rather than allowing the loss to continue on the 8582.