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Last Year of rental shows a loss

gfpstaxes
Level 4

How do you take a loss in the last year of a schedule E?

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sjrcpa
Level 15

NO. They only get to use it against other passive income or when they dispose of the house.

The more I know, the more I don't know.

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Jim-from-Ohio
Level 11

Did the property sell and you are trying to free up suspsended losses?  if so check the box for complete disposition on the schedule E Worksheet

gfpstaxes
Level 4

No, they reverted it to personal use for this year. Eventually they will rent it again, but they don't know when.

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sjrcpa
Level 15

Then they can't take the loss this year. It remains as a passive loss carryover.

The more I know, the more I don't know.
gfpstaxes
Level 4

Would they be able to take it if it was the last year they were renting the house?

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sjrcpa
Level 15

NO. They only get to use it against other passive income or when they dispose of the house.

The more I know, the more I don't know.
sjrcpa
Level 15

It is now known as a former passive activity.

The more I know, the more I don't know.
gfpstaxes
Level 4

Can it be carried forward as a disallowed  loss so they can use it if they sell the house?

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sjrcpa
Level 15

Yes

The more I know, the more I don't know.
gfpstaxes
Level 4

That's on the 8582?

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sjrcpa
Level 15

Yes

The more I know, the more I don't know.