TaxGuyBill
Level 15

It's interesting that the program is not doing it.  Is the taxable gain of $55,886 showing up on 4797?

For some reason, the program is not recognizing that as passive gain.  The jump from the Asset Entry Worksheet to the 8824 to the 4797 must have made the program forget that it was passive.

Maybe there is a work-round, but offhand I can't think of a good one.

Unfortunately, I don't overrides are possible on the 8582.  So my first thought is that you would need to manually create a 8582 (such as from a PDF from IRS.gov).  You could attached that 8582 as a PDF to the e-filed return, but I might be hesitant to do that, and I think I would file by mail.

As for using the loss, you would just override line 22 of Schedule E to allow that loss.

0 Cheers