Client has passive loss carry over on several residential rentals. Client converts one of the rentals to personal residence. How do I keep the loss carryover if I delete the rental worksheet? Software will not let me show zero days of rental on the worksheet.
You may consider keeping the fictitious rental property listed, with zero income, zero depreciation and zero expenses. You may need to enter 15 rental days to get rid of the error.
I have a similar question, how do I carry over passive losses on a rental property that was converted to personal use, when that was the only passive activity?
I did try your suggestion, but the result was that the losses were allowed, yet there was no passive income during the year. In the other scenario there is still passive activity.
Oh, you are right, I was incorrectly assuming the taxpayer was over the income limit. Sorry about that.
Manually fill out the 8582 and mail the return would be the correct way.
Manually filling out the 8582 and attaching as a PDF is an option, but the 8582 really shouldn't be attached as a PDF because the IRS and ProSeries is set up for accepting it as a non-PDF.
Or do what most people do and file an incomplete tax return with the form missing, then add it again whenever the house is sold.
Thank you! I just found instructions for rental carryovers with different participation than current year. It tells you to uncheck the active participation box. This got the Form 8582 to calculate correctly and using your suggestion of putting in 15 days of rental, I think my problem is solved.
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