How to Carryforward a Schedule E Loss - Posted by Tax_Question

Real Estate Investing
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Posted by Dave T on September 12, 2008 at 08:03:52:

You file Form 1045 when you are claiming a refund due for a prior year tax return that results from a NOL carryBACK.

Since you are carrying your rental losses forward to another tax year you do it on your forms for this tax year. You want to “suspend” as much of your Schedule E as you need to get that negative AGI off your 1040. Read the Schedule E instructions to see how you suspend losses and carry them forward by limiting the amount you enter on line 23 of your Schedule E. To get the maximum carryforward to use for next year, try to make your AGI positive and equal to the amount of your personal exemption plus your Schedule A (or itemized) deduction.

Do the same thing with Schedule C. Refer to the instructions to figure out how to carry your NOL forward to the next tax year.

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How to Carryforward a Schedule E Loss - Posted by Tax_Question

Posted by Tax_Question on September 09, 2008 at 20:17:28:

I’m completing my 2007 tax return to file by the extended deadline on 10/15/08. My schedule E is showing a $15k loss. My schedule C is a $2k loss. I have no other income to offset these losses and would like to carry them forward to 2008.

I filled out form 8582 (passive activity loss limitation form) and the total rental loss of $15k was allowed. I am assuming I have to report the $15k rental loss on line 17 of my 1040 even if I have no income to offset this loss. Correct me if I’m wrong.

Now I have a combined loss of $18k for my AGI on line 37 of the 1040.

I figure I have to file a Form 1045 Schedule A to claim a net operating loss. I filled this form out and ended up with a NOL of $17k since the standard deduction is excluded from the NOL calculation. I did not see anything on this form that excludes a Schedule E loss from a NOL.

To sum up, I file schedules C, E, form 8582 and schedule A of form 1045, along with some other forms that supplement my schedules C & E.

If there are any CPAs or experienced tax filers who could let me know if I am doing this correctly I would appreciate it.