Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-22-2014, 12:52 PM
Junior Member
 
Join Date: Feb 2014
Posts: 2
Passive activity loss carry over

Hi,
I had this rental property which I sold in 2013.
I had not properly carryover the passive activity loss for last 5 years.
I know I can amend this for 2010,2011 & 2012.
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-23-2014, 06:41 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,232
Quote:
Originally Posted by nbalu1974 View Post
Hi,
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
rehab credits, passive activity and self rental Jlee Rental Real-Estate 0 10-15-2013 06:41 PM
How does a capital loss carry-over from an amended return? niklasjn Capital Gains 0 09-13-2013 12:12 PM
How can a taxpayer show material participation in a business activity and avoid passive loss limitation rules? TaxGuru Rental Real-Estate 0 01-31-2012 08:26 PM
What is the Impact of a Passive Activity classification? TaxGuru Rental Real-Estate 0 01-21-2011 02:18 PM
Deducting Passive Activity Losses workout Rental Real-Estate 1 02-07-2009 11:03 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning