| You do qualify to carry over "the disallowed passive loss from iyour rental activity incurred in the prior years tax return. This carry over loss is reported on Form 8582, and the loss is reported on Line 1c as a negative number.
Assuming you qualify for the deduction, this deduction would flow to Schedule E line 23 tax return. Thereafter, it would eventually flow to Form 1040 page Line 17 again as a negative number that would allow you to offset your regular taxable income. | 
