TaxGuyBill
Level 15

@rx7TII wrote:

1.) Can the passive loss carryover from 2019 prior be claimed in 2021 as a $25,000 max loss if rented again even though it was personally used in 2020? 

2.) How to report - Does the previous passive carryover loss need reported on form 8582 for 2020 even though not rented? If so I am unsure how to do this without leaving the rental in the software at 0 days rented / 0 days personal no expenses/depreciation. Or is form 8582 unnecessary for 2020 because it was already reported in 2019?


 

Yes, the Passive Loss Carryover is still valid when it is a rental in 2021.

Yes, Form 8582 is supposed to be still filed with 2020.  However, ProSeries erroneously does not do it.  I think most people probably just don't file 8582, but as you pointed out, a work-around would be to enter it as a rental property with zero income/expenses.  Both methods are technically wrong.

I suppose a possibly better way would be to attach the 8582 as a PDF.