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Where to take Passive Losses on old Rental Property

kburton
Level 1

Taxpayer had a rental for 2017 and 2018 with passive losses. In 2019 they couldn't rent it out so took it off their schedule E. In 2020 they sold the house.

Since the rental isn't on the 2020 tax return - where can I input those passive losses in the 2020 tax return? 

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1 Comment 1
TylorValdez1
Employee
Employee

You need to put the rental and the prior years unallowed passive losses back into screen 18. Then enter a 2 in the field for  delete next year in order to free up the passive losses.

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