Form 8582 - Unallowed Losses

[Yardley CPA]

New client with Rental Property. 2012 AGI 162,000. Form 8582 shows total unallowed passive losses of ($5,493) Shouldn't this amount carry over to the 2013 return? If so, how can I enter that amount on this years form 8582? I'm having a mind-lapse with the passive loss rules.

Thanks!

[BulldogTom]

Income over 150K nullifies the rental real estate exception for deducting passive losses. They will be suspended until the income falls below 150K or the passive activity is disposed of.

Tom

Hollister, CA

[Yardley CPA]

Tom...yes, thank you. That's why I included the AGI for 2012. I know it is suspended but I want to bring forward the amount and enter it on this years 8582. Since they are a new client it did not transfer automatically. I'm having trouble entering the amount and was wondering if anyone could provide some guidance on how to do that?

[BulldogTom]

Sorry, I should have seen that you were trying to bring those carried losses onto the 8582.

Yes, you enter it on the Schedule E. it is on the "loss limitations" tab. Last tab on the form.

Tom

Hollister, CA

[imjulier]

Yes, prior year losses should carry over to line 1c on the 8582. I have not had a problem with these rolling over. However, if I was having a problem rather than figure out the rollover problem, I'd be inclined to over-ride on worksheet 1.

[BulldogTom]

Julie,

When it is a new client, it has to be entered. It goes on the form that is associated with the passive activity. There is a tab on the ATX Sch. E form for entering prior year passive losses.

I did the over ride thing a few years ago on worksheet 1 before I figured this out. The next year, it was all screwed up because the overrides did not carry to the new year. Then I found out how to do it the right way in the software.

Tom

Hollister, CA

[Yardley CPA]

Thanks very much.