Enter a prior-year loss on a passive activity

Use an activity code to enter a passive activity loss carryover from a prior year.
  • Business:
    Select the
    C-3
    screen in the
    Business
    folder. Enter the suspended loss in the
    Passive Activity and Other Information
    section.
  • Rent & Royalty:
    Select the
    Rent-2
    screen in the
    Rental
    folder. Enter the suspended loss in the
    Passive Activity and Other Information
    section.
  • Farm:
    Select the
    F-3
    screen in the
    Farm
    folder. Enter the suspended loss in the
    Passive Activity and Other Information
    section.
  • Farm Rental:
    Select the
    4835-2
    screen in the
    FarmRent
    folder. Enter the suspended loss in the
    Passive Activity and Other Information
    section.
  • K1 from a 1065 or 1120S:
    Select the
    K1-7
    screen in the
    K1 1065, 1120S
    folder. Enter the suspended loss in the
    Passive Activity Info and Carryovers, Sec 179 Carryover
    section.
  • K1 from a 1041:
    Select the
    K1T-2
    screen in the K1
    E/T
    folder. Enter the suspended loss in the
    Passive Activity and Other Information
    section.
note
The
Passive activity code
field determines where you report the loss on Form 8582. For example, activities coded
2=Rental real estate with active participation
are reported on Form 8582 line 1c.

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