Limit passive loss allowed on Form 8582 to property being disposed in ProConnect

ProConnect uses all current year income and losses (including suspended losses) in full. If the income from an activity exceeds the aggregate loss from the activity, the program carries excess income to Form 8582 to affect the losses from other passive activities. If desired, you can use the steps below to limit suspended losses to only the property being disposed.

To limit the allowed loss to a single activity:

1. Go to the Input Return tab.
2. On the left-side menu, select Income.
3. Click on the Rental and Royalty Income (Sch E) screen.
4. Select the rental activity not being disposed from the tabs along the top of your screen.
5. Scroll down to the Other Information section.
6. Enter a -1 in Deductible gain (loss) (-1=none) [Override].
7. Repeat steps 4-7 for all other activities with suspended losses that are not being disposed.

Related topics

• How to generate Form 8582 for an individual return ProConnect
• Entering a disposition of rental activity with multiple depreciated assets in ProConnect Tax
• Understanding basis limitations for K-1 losses