Does TurboTax online correctly handle applying rental real estate gains against stock losses using forms 4797, 8949, Schedule D? I get a diiferent answer doing manually

Forum|Forum|1 year ago
February 28, 2025
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TurboTax overstates tax owed. I cannot see completed 4797 unless I file so I cannot compare against my manual entries

JamesG1

You can print or view your full tax returns prior to filing after you have paid for the software.

Down the left side of the screen, click Tax Tools.
Down the left side of the screen, click Print Center.

Have you reported the sale of the rental real estate through Schedule E, the rental activity?

In TurboTax Premium Online, access the sale of rental real estate within the real estate asset.

Down the left side of the screen, click on Federal.
Down the left side of the screen, click on Wages and income.
Click the down arrow to the right of Rentals, royalties and Farm.
Click to the right of Rental Properties and Royalties.
At the screen Your 2024 rentals and royalties summary, click the pencil to the right of the rental property.
Click the pencil to the right of Rental property under Assets.

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RangaPAuthor

Hello JamesG1,

I would like to add one small clarification to my question:

I actually sold the rental property in February 2024 and received long term capital gains.

Does this change the response you provided?

This is the revised question (marked in caps):

Does TurboTax online correctly handle applying rental real estate SALES gains against stock losses using forms 4797, 8949, and Schedule D? I get a different answer doing manually

RangaPAuthor

I have not received a satisfactory answer to my original question. I am getting two different answers for tax owed: Turbotax vs Manual calculation.

I entered long term capital gain selling my rental condo property in Turbotax (says form 4797 was used) and short and long term stock investment losses from my brokerage accounts. I expected Turbotax to write off long term real estate capital gains against brokerage losses and calculate federal tax owed. I cannot see the IRS schedules unless I pay first. Google search says there have been problems with 4797 vs Schedule D

I also manually tested by writing off the long term capital gains from selling my business condo rental property (from Form 4797) and writing off my stock investment carryover losses on Schedule D. The federal tax owed was significantly lower (thousands of dollars).

Can anyone explain if they see any error in my approach? Pleas help!!