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    Help with 8582

    I have a client who was renting a home for several years and had carryover passive losses of over $100,000 and now moved back into the rental. What happens to the carryover passive losses as he has no other passive income and has no plan of buying another rental as he is retired now. On Drake if I delete the rental schedule E, the form 8582 also disappears. Client wants to show the carryover passive losses.
    Any feedback on what I should. Do I have to show form 8582 if I have no rental activit? I am stuck on how to proceed with these suspended passive losses.
    Thanks for help in advance

    #2
    The passive losses can be released when there is a fully taxable disposition of the property.

    Yes, according to the instructions you should continue to file the 8582 form, and it would be a good idea even if not required.

    Why don't you leave the rental in the return, but stop depreciation (which is mandatory)? Then there will be zero income and expenses for the rental, and the Form 8582 should still appear. Some software products will allow you to mark a rental activity as "inactive", but I don't think Drake is one of them.
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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