michelle6
Level 1
12-07-2019
09:58 AM
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Client's 2014 passive loss carryforward did not carry over to the 2015 Form 8582. Can I treat it as a prior year adjustment on line 27 of Schedule E? Or, do I have to amend the tax returns from 2015 - 2017 to show the PAL being carried forward to all 3 tax years? He has enough passive income in 2018 to absorb most of the 2014 carryforward loss.
Thank you in advance for your help
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sjrcpa
Level 15
12-07-2019
09:58 AM
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I would rerun 2015-2017 returns to see if anything changes. If yes, file amended returns for those years. If no, I'd just adjust the prior year losses on the 8582.
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abctax55
Level 15
12-07-2019
09:58 AM
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" I'd just adjust the prior year losses on the 8582"
Just document the trail of "non-use" in prior years in case of a future inquiry.
Just document the trail of "non-use" in prior years in case of a future inquiry.
"*******Tax software is no substitute for a professional tax preparer*******
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