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If a prior year loss, although allowed for at-risk purposes is disallowed due to passive activity limits, does this amount go on line 1 of Form 6198 in 2019?

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Level 1
If in 2018, a passive activity loss from real estate was covered as all at-risk, but none of it deductible in 2018 due to passive activity limitations.   In 2019, have similar situation with same activity -  does the 2018 disallowed loss get added to the current 2019 loss from that same activitiy on Form 6198? or not since that 2018 loss was not disallowed by reason of the basis limit rule?
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2 Replies 2
Level 12

@zerbodon wrote:
If in 2018, a passive activity loss from real estate was covered as all at-risk, but none of it deductible in 2018 due to passive activity limitations.   

In 2019, have similar situation with same activity -  does the 2018 disallowed loss get added to the current 2019 loss from that same activitiy on Form 6198?

or not since that 2018 loss was not disallowed by reason of the basis limit rule?

That last line is contrary to your first lines.  Why was the 2018 loss not allowed?  Basis?  Not At-Risk?  Or Passive Loss?

For 2019, what is the reason you filing Form 6198?

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Level 1

In reply to TaxGuyBill-

The 2018 loss was disallowed under the passive activity rules, even though there was sufficient basis and all amount of basis is at-risk.  Same activity loss and reason for 2019. 

Does the amount of the disallowed 2018 loss get included with the amount of the 2019 loss on Line 1 of Form 6198?   Seems not as the instructions for Form 6198 state that Line 1 includes prior year losses not allowed by reason of the at-risk rules.  My losses were disallowed by reason of passive activity.

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