Form 8582-for suspended rental

[rhibbscpa]

How do you reflect on Form 8582, Part 1, Line 1c, "Prior years' unallowed losses", a Sch E residential rental that was off the market for the current one year? To omit the rental for Sch E when you seelect option 1 = "delete this year", it also deletes the prior year unallowed losses from the form 8582. But in the next year the property was rented out again. What is the proper treatment?

[abctax55]

I don't think the "-1" option is (was?) correct.  

In the prior year, I would have tinkered with the assets to make sure no depreciation was taken (either remove the method, or change it to "99" so no deprec was calculated, OR override current deprec with the "-1".

You could go back to 2018, remove the "-1" you put on Screen 18, then re-proforma after doing the above.

You can also re-enter the PALS (don't forget AMT, and State if different) in the 2019 program (three up from the bottom, right hand side) in Screen 18.

[rhibbscpa]

Thanks for the response, but when I remove the "-1", the Rental Property shows up in Column A of Sch E, even though it is not a rental that year. Is there a way to accomplish having the property omitted from Sch E, but still show up on 8582 (assuming this is the correct treatment for IRS purposes).

[abctax55 · Accepted solution]

I personally wouldn't have much of an issue with it showing on Sch E, but if you don't like that then "-1" is probably the only option.  Perhaps rename it (temporarily...) to "Rental not in service"?

[rhibbscpa]

Thanks, I will take your advice, wanted to make sure I wasn't missing something.