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Level 1
April 8, 2021
Question

Where to take Passive Losses on old Rental Property

  • April 8, 2021
  • 1 reply
  • 9 views

Taxpayer had a rental for 2017 and 2018 with passive losses. In 2019 they couldn't rent it out so took it off their schedule E. In 2020 they sold the house.

Since the rental isn't on the 2020 tax return - where can I input those passive losses in the 2020 tax return? 

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1 reply

Level 6
April 8, 2021

You need to put the rental and the prior years unallowed passive losses back into screen 18. Then enter a 2 in the field for  delete next year in order to free up the passive losses.