Reply To: Roth conversion income offset by suspended PAL?

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#2349
ruth
Participant

Assuming you have no other passive activities, you don’t use Form 8582 because the (ordinary, not capital) loss on the sale isn’t a passive loss. See “Reporting an Entire Disposition on Form 4797 or Form 8949” on page 8 of the Form 8582 instructions. Include the suspended loss on line 22, Schedule E. See the instructions for line 22,Schedule E. The loss will reduce your other income (including income from a Roth conversion).