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How to populate form 8582?

Tbsksoe

Hello, I had a form 8582 last year (not using freetaxusa) to go along with my Schedule E for a rental property I have. It doesn't look like Freetaxusa populated one for me this year, how can I make sure I populate or add one, or what may have I answered incorrectly so that it's not prompting for one or showing me one. Thank you so much for your help

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MatthewD

The Form 8582 is for Passive Activity Losses. The software will automatically calculate your rental losses and apply them to Form 8582 as needed.

Tbsksoe

@MatthewD I did have losses, but no 8582 populated. So that is correct? Anyway I can revisit something to doublecheck? Thank you for the help

MatthewD

Hello,

Yes, that is likely correct. The tax software will calculate how much your passive losses are and apply them as allowed. They may have all been applied to 2023.

g74tc89

Nevermind

brunse-8

https://community.freetaxusa.com/discussion/comment/1971#Comment_1971

did this end up working? I'm encountering the same problem right now. I don't see how the software could figure it out for me when it doesn't have all the info (unallowed losses)

MatthewD

Hi brunse8,

The software will need all the information in order for passive losses to be calculated. For example, if you have a Schedule K-1 from a partnership or an s-corp, you must answer questions about actively participating. Also, if you have a rental property, you must complete the Rental Income information pages and answer similar questions about being active or not. And entering any passive loss carryovers if this is your first year using the software or you skipped a year using it.

phicd4

I am having the same issue. I have losses that exceed rental income, but instead of generating a Form 8582 the software changes my expenses to equal my income on Schedule E and generates a Worksheet 5-1 with the carry overs. I cannot figure out a way to get it to generate Form 8582.

MatthewD

https://community.freetaxusa.com/discussion/comment/5243#Comment_5243

This will happen when you have Personal Use days for your rental property. The IRS says, "

If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that’s more than the greater of:

14 days, or
10% of the total days you rent it to others at a fair rental price."

phicd4

https://community.freetaxusa.com/discussion/comment/5258#Comment_5258

Thanks for your reply Matthew. I transitioned my house from my permanent residence to a rental house at the end of February. Once it was transitioned to a rental house I did not spend any days there or use it for personal purposes.