Passive Loss Carryover

MCH · Post by **MCH** » Mon Dec 27, 2010 9:56 am

My rental property is in Canada and I am resident of the US. When I file my income tax in the US, how do I claim the rental passive loss carryover from 2009 if the property was not for rental anymore in 2010? 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?

JGCA · Post by **JGCA** » Mon Jan 31, 2011 9:16 pm

If you had calculated the Rental Loss in 2009 it should be on hand for the 1040 filing in 2010, if you never filed showing a loss in 2009 it can not be claimed now you either had a loss in 2209 that was disclosed on 1040 or you did not. If you only became resident in the US in 2010 than no loss of 2009 will be allowed and as you know in Canada you do not get any any passive loss rules .

MCH · Post by **MCH** » Mon Jan 31, 2011 11:48 pm

I filed in 2009 and claimed most of my rental loss, but couldn't claim my total loss because of my income and I am wondering if I can claim in 2010 the loss I couldn't claim in 2009.
Thanks,

nelsona · Post by **nelsona** » Tue Feb 01, 2011 7:35 am

I believe you can carryforward your passive loss to this year's schedule E (even though you are no longer generating income) and using it there.

In the end, any passive loss that you have not been able to use can be claimed when you sell the property.