From cltrader@21:1/5 to All on Thu Aug 27 07:32:13 2020
I have always used the H&R Block Premium program to prepare my taxes.
W-2 Income from myself & my wife along with a handful of single family
rental properties for the last 15 years.
We have taken advantage of the passive losses with the Active Rental
Exception.
The losses are quickly phasing out as our AGI approaches 150k.
I e-filed on July 14th and owed 1826.
After e-file I started looking closer at my rental properties and I
discovered that I have not been carrying unallowed losses forward each
year since I have owned them. I went into the rental & royal interview
and checked the box(Had Passive Losses carrying forward to 2019) for
each of my rentals.
After I did that I realized that the calculation for Modified Adjusted
Gross Income went from 146348 to 139067. This increased my passive loss
on 1040(Line 7a) from -1827 to -5217. That took the $1836 that I paid to
the IRS down to a Refund of $418.
I know that the MAGI calc is complex. I don't understand how it factors
in prior year passive losses. I went all the way back to 2003 and
entered all of my unallowed losses(Worksheet 5 Column C) for each
property in an Excel Sheet.
What is my best strategy here? File an amended 2019 return and include
the passive losses from prior years, or wait and enter them all on my
2020 return?