1040: Passive Losses

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Categorize income and loss as either passive or nonpassive on the Activity Information screen.

Enter each activity separately to keep the tax treatment correct.

Carryover screens are available through each activity, or use the Form 8582 workpapers to review the carryovers for all activities.

The tax application also generates Form 8582 for Alternative Minimum Tax purposes.

For Schedule K-1 data entry:

1. Passive and nonpassive income can be entered in the same Schedule K-1 activity.
2. Activity type is important for Schedule K-1 data entry to determine if the deductions, AMT adjustments, and credits are passive or nonpassive.

Topics

• 1040: Passive Losses - Return and Print Options
• 1040: Passive Losses - Data Entry
• 1040: Passive Loss Carryovers
• 1040: Passive Losses - Activity Disposition
• 1040: Passive Losses - Prior Passive Activities
• 1040: Passive Losses - Aggregate Rental Real Estate Interests
• 1040: Passive Losses - Form 8582 AMT
• 1040: Passive Losses - Reviewing Form 8582

 

 

 

Tutorials/1040_passive_intro.htm/TY2019

Last Modified: 01/28/2020

Last System Build: 06/18/2021

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