disallowed passive operating loss

Forum|Forum|5 years ago
February 17, 2021
3 replies
0 views

schedule E work sheet, "sum of losses in individual years should not be greater then total loss"

Do not understand what they are looking for or where to find the numbers.

TurboTax Home & Biz Windows

Irene2805

The message is saying that the loss you entered for a individual previous year is greater than the total losses for all years combined.

To check your Passive Activity Loss Carryovers from a Prior Year for your Rental Property in TurboTax Premier:

Click Federal Taxes > Wages & Income
Scroll down to the Rental Properties and Royalties section
Click the Start/Revisit box next to Rental Properties and Royalties (Sch E)
On the Rental and Royalty Summary screen, click the blue Edit button next to the rental you'd like to review.
Click Continue until you reach the screen entitled Do any of these situations apply to this property?
Check the box next to I have passive activity real estate losses carried over from a prior year.
Click Continue
You'll be able to input the carryover amounts on the next screen.

halstax1Author

I have turbotax "Home and Business" This is my first year doing My own taxes. Please bear with Me

If I sound a little "Stupid" but I'm still having a hard time with this section. The difference between "disallowed" "carry over" And QBI is really confusing to Me.

AmyC

Employee

Disallowed - means that you can't take the loss this year.

Carry-over- means that you are allowed to put it on some forms and carry the loss into next year. You might be allowed to claim some of those disallowed losses next year.

QBI- qualified business income comes from several places. The income must be positive in order to take the 20% reduction. Please see this IRS article on QBI. The different types of incomes are at the top and you can choose the link that suits your income.

We are glad to help!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

kunanrod

Please advise how did you fix the transfer error. I have yet found a way to correct it. Thank you.

g-chan

It is trying to add up all the "disallowed passive losses" in the previous years and make sure they add up to the sum. It blocked me from e-filing and took me a long time to trace the issue. I looked under the smart worksheet for Sch E for the property in question. For 2022 tax year, TT add everything from 2018 to 2022 and calculated what is "prior to 2018" to get the "total loss". However, when it did the math described in the first sentence, the "prior to 2018 loss" was not taken into account, causing this inconsistency error. After I manually adjust the "total loss" to reflect only from 2018, it fixed the error in my case.