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.
This discussion has been locked. No new contributions can be made. You may start a new discussion here
ProSeries can't do it correctly.
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?
Your question is the same, so the answer I gave above is the same.
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.
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.
Good idea.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.