Preserve suspended loss on Schedule E

[sariscpa]

Taxpayer has a suspended passive loss on Schedule E from prior years. The property is now converted to a second home. Is there any way to eliminate the Schedule E from the tax return and still keep the loss on form 8582? If I delete Schedule E the loss disappears from form 8582. Is there any way to enter the prior year loss directly on the form 8582 or does it have to come from an activity? Is there a way to tell the software to exclude the Schedule E for this property on the tax return?

[sjrcpa]

I don't think so.

I rename the Schedule E/former rental as "Former Passive Activity", stop depreciation, and let it ride.

[IntuitReneV4]

That's a good idea to rename it, "Former Passive Activity" and let it ride. Since you generally cannot enter a prior-year loss directly onto Form 8582, you should not delete the Schedule E . Instead, indicate on the Schedule E that the property was used for personal use 100% of the time, with zero rental days and ensure all current-year rents and operating expenses are blank or zero.

By showing zero rental days and zero income/expenses, ProSeries will recognize that a Schedule E does not need to be filed or printed for the current year. However, this will preserve the property worksheet in the system so that any prior year unallowed losses are rolled forward to the next year.