passive loss

[taxmom34]

since retiring last year i've been using turbo tax for my family and this year i efiled sister's return with a schedule E , private residence, no new depreciation, never any losses and TT is holding because of form 8582 passive activity. Is that form really required? it hasn't been for the past couple years and i was under impression it is only used to show passive losses.

[John of PA]

Perhaps all returns with passive activity is being held up as a general procedure, however you are right, and 8582 would not be needed if there is only passive income and there has never been any previous year passive losses coming forward.

[Koss]

Form 8582?

I don't understand why the program is including Form 8582 in the return if there is no loss.

Are you sure that's why the return is on hold? When you print the return, does Form 8582 show up in the PDF?

It's probably on hold because you still can't e-file returns with Form 4562. You said there is "no new depreciation," but if you are claiming depreciation of the rental property itself, you still need an entry on line 17 of Form 4562.


BMK

[Y2KEA]

Lacerte is doing it also

My Lacerte program is generating the 8582 on sch E properties even though there are no passive losses. Might be something to do with the 4562/general glitch programming thingy not being ready yet. Will need to wait until the updates are out so e-filing these returns can begin. May go away by then.

[Koss]

Nonexistent Passive Loss

Well, that kind of makes sense LOL

'Cause Lacerte is an Intuit product, just like TurboTax

My software is not generating Form 8582 when there are no passive losses. But Form 4562 is definitely required for any rental property, unless the property has been fully depreciated in prior years. And the IRS website still says that you can't e-file Form 4562 until late February or early March.

BMK

[Gary2]

The 8582 instructions, under Reminders, say that beginning in 2011 you must file if you have an overall gain. It's worded strangely, but the programs are correct to that extent. But they're not correct in ignoring the exception when the only passive activity is rental with active participation and without going over the allowable limit.

[Kram BergGold]

Read line 4 on Form 8582

I just noticed this, this morning. Line 4 says if the amount is zero or a gain stop and include this form with the return.