Review Circle: K-1 passive operating loss sum of losses in individual years should not be greater than the total loss

Forum|Forum|2 years ago
March 22, 2024
2 replies
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Hi -

I keep getting circled back to the same review question - even after trying several things. The review statement is: passive operating loss sum of losses in individual years should not be greater than the total loss for the K-1 Limited Partnership. Going back and checking the information provided in this year's and last year's K-1s, the information I entered is correct. But TT is telling me that I can't exceed the amount that was listed as last year's loss. I tried putting this year's loss to zero so that the total matched last year's loss but that didn't resolve the problem. I then noticed that there was a $2 difference in a loss number as provided in last year's K-1 box 1 and in the Section 199A statement - so I also corrected/changed that in case it was the problem, but I still get circled back to the same review.

I have no idea how to get out of this loop and would appreciate any information folks may have. Thank you!

TurboTax Premier Online

PatriciaV

Employee

Since you have made at least one correction, it's possible this is browser-related. Please log out of TurboTax, refresh your browser, and clear your cookies and cache. Then restart your browser and log into TurboTax and run Review again.

For more help, please see:

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tmf5Author

Thank you! I did just try that and then tried opening TT in a browser I never use - and I am still getting the same review question. I've checked all of my K-1s for this partnership back to 2018 and have entered everything correctly so I have no idea why TT is saying something is wrong - or how they even came up with the "total loss" since it is exactly last years' loss, not all losses combined.

I've continued forward and it appears TT may let me file without resolving the issue (I hope!). That's likely what I'll do....

tmf5Author

Further research indicated I would not be able to submit my taxes without resolving the review question. The only way I could figure out to do that was to edit the carryover loss K-1 information and zero out my losses in 2018 and 2019 (2020 and 2021 did not have losses) in order to make my entries (which were correct) match the total that TT decided was the total. Seems bizarre that I had to rewrite history and ignore prior losses - luckily small - in order to file my taxes. Seems to me TT is making an error in calculating total carryover losses but at least in the online version, you cannot correct their total.

NYCBrooklynJ

I am having the same issue, using the desktop software one Mac OS. Is there a technical update to resolve this?

PatriciaV

Employee

When you run Smart Check, TurboTax will present a section of Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Disallowed Passive Losses by Year and Type. For some properties, the carryovers are out of sequence. For instance, 2022 is on the 2021 line. Or the 2023 number is on the 2022 line.

NOTE: Please use the Chrome browser to access this table when running Smart Check.

To fix this, enter the correct number starting with the most recent year. Then move up the schedule until all years are correct. This may be easier if you can access your 2023 return and print the Schedule E worksheet.

We are not aware of an estimated date for this experience to be revised before the tax filing deadline. The ultimate fix is to 1) clear and start over in TurboTax Online or 2) transfer your 2023 return into a new 2024 return using TurboTax for Desktop.

@NYCBrooklynJ

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