Current year (2024) vacation rental loss not being added to prior year (2023) loss carry over

Forum|Forum|1 year ago
March 9, 2025
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I'm using 2024 Turbo Tax Premier desktop version. I've entered my vacation rental property income and expenses and the result is a loss. Schedule E has the following information:

Sch. E line 21: - $14,928 this is a loss

Sch. E line 22: $0 (this is correct since the income is greater than $150,000)

Sch, E line 25: $0 (the decription for this line specfies that lines 21 & 22 are added together.

2 questions:

(1) Why is line 25 $0 when it should be -$14,928, the sum of lines 21 & 22?

(2) On the Federal carry over sheet the carry over from 2023 is not increased by $14,928 in the 2024 column. I would expect the 2024 column to show an increase of $14,928 from 2023. Why isn't the carry over increased?

dom416Author

I'm adding more info in the event it provides additional insight. From what I have been able to find on my own, when a taxpayer's (married filing joint) income exceeds $150,000, losses from a rental property can not be claimed in that year. Instead they are carried forward to next year's taxes. And they never expire until the property is sold, applying them against any gains at that time. I am not seeing this loss being added to the previous year's losses. I say this because the carry over worksheet is showing the same carry over figure for both the prior year column (in my case 2023) and the current year carry over column (in my case 2024).

I've tried sever things, most I can not recall. I did go back through the rental income section going through all the questions again and still no change in the loss showing up in the carry over worksheet. One thing I did do that worked, but I'm not sure it is the correct way to address this, is I overroad line E8 in the QBI Income Smart Worksheet putting in the loss figure from schedule E. This is a qualified business since it is a short term vaction rental and I am interacting regularly with all our guests. With this override, the carry over worksheet is now adding to the carry over the loss for this year.

It seem very odd to me that TT would not automatically add the loss to the carry over worksheet. Or perhaps I've done something else incorrectly? Any insight on this and the correct way to address this would be greatly appreciated.

The figure in red in the images below is the override I added. Prior to me adding the override line E8 was blank as well as E1 and E3 were also blank.

RobertB4444

Go back to the information that you entered for the property and make certain that you checked the box for 'actively participating' so that the loss is carried forward properly.

@dom416

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dom416Author

Thank you for the reply!

Yes, the active participant box was already checked. But still not seeing this year's loss added to the prior year losses in the carry over worksheet.

AmeliesUncle

@dom416 wrote:

Sch, E line 25: $0 (the decription for this line specfies that lines 21 & 22 are added together.
(1) Why is line 25 $0 when it should be -$14,928, the sum of lines 21 & 22?

(2) On the Federal carry over sheet the carry over from 2023 is not increased by $14,928 in the 2024 column. I would expect the 2024 column to show an increase of $14,928 from 2023. Why isn't the carry over increased?

Re-read the description for line 25.

Is the loss showing up on Form 8582? Does 8582 show the 2023 loss?

In 2023, did you enter any personal days?

dom416Author

Hello AmeliesUncle. Thank you for reviewing my use of TurboTax and carry over of passive loss. To answer your questions. I put my responses in all caps.

Is the loss showing up on Form 8582? YES, I SEE THE 2024 LOSS ON FORM 8582 PART 1 LINE 1B

Does 8582 show the 2023 loss? YES, FORM 8582 PART 1 LINE 1C SHOWS THE LOSS FROM 2023

In 2023, did you enter any personal days? 2023 PERSONAL DAYS ARE ZERO (0)

AmeliesUncle

It sounds like it is showing up correctly on the tax return.

As for why it isn't showing up on the carryover worksheet you are looking at, I don't know. Because it seems to be showing it up correctly on the 8582, I would just forget about the worksheet for now, but make yourself a note for next year to check if the correct carryover is going to your 2025 tax return.