Passive Loss Carryover

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  • Questionguy101
    Senior Member
    • Jan 2007
    • 423

    #1

    Passive Loss Carryover

    How do you claim the rental passive loss carryover from 2005 if the property was not for rental anymore in 2006? Do you file a Schedule E and claim the passive loss carryover there with no rental income and expenses? I tried to do it that way but my tax program refused to efile the tax return because it 'assumes' that a Schedule E should have rental income. What would you do?
  • solomon
    Senior Member
    • Aug 2006
    • 1012

    #2
    None

    When full interest is disposed of in a taxable transaction, then the loss can be used. Prior to then, some passive income will be needed to use it.

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