Originally Posted by nbalu1974
I had this rental property which I sold in 2013.
#1;I had not properly carryover the passive activity loss for last 5 years.
I know I can amend this for 2010,2011 & 2012.
#2;But can I amend also for 2009(closed tax year), considering I am not
changing my tax liability for that closed tax year.
Thanks for the help in advance.
#1;Correct ; as you know, You have 3 years from the date of filing or 2 years from the date you paid tax whichever is later to amend your taxes and claim an additional refund. the first thing what you need to do is amend the 2010/2011/2012 tax returns to properly reflect the 2010 passive loss on the 2011 Form 8582. This might not affect your 2011 taxes at all but I'd do in none the less just so the "mechanics" of loss carry forwards and loss recognition are properly observed and visible to the IRS. File your 2010 amended return, wait a couple of weeks for the IRS to process it, then file your 2011 amended return and so on. Having a passive loss carry over from 2010 that wasn't reported in 2011 suddenly showing up in a 2012 return could raise some flags. If the PAL is not deductible in 2011 but is deductible in 2012 then if you're legally entitled to it you should take it.
#2;There is no deadline. You can file an amended return at any time. In the case of a closed tax year, the period for assessment and/or refund has expired.
I guess in some states, you are not required to file an amended return reporting a change in a carryover item if it does not change your tax liability in the tax year of 2009. You MAY include a schedule with the first return where the tax liability is affected by prior year changes of a carryover amount. The schedule allows you to inform Dept of Rev of your state of prior year changes to carryover amounts where there was no change in tax liability.