“Is there a limit on the number of years you can claim a loss on Schedule E on a rental property?”----> If the taxpayer meets the criteria for active participation in real estate rentals, it would be considered a business loss and could be carried back. If not, it's a suspended passive loss. And if he qualifies as a real estate professional and materially participates, any amount of loss could be carried back. If you choose to waive the two-year carryback period, then carry the NOL forward to the first year after the NOL year.If the NOL is not used up in the first year after the NOL year, continue carrying it forward up to a maximum of 20 years. If after the 20-year maximum the NOL is not used up, the remaining NOL amount is lost. When you carryback an NOL it is used to reduce income in the carryback year. Consequently, you must recalculate your tax liability for that year based on the revised amount of taxable income. Use Form 1045 to recompute the tax for the carryback year. Bear in mind, certain deductions that you may have taken that are limited by adjusted gross income (AGI) may be affected as well. For example, the medical expense deduction (7 1/2% floor) and miscellaneous itemized deductions (2% floor).