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March 29, 2025
Question

I have loss carryover from 2023 on rental property. I mistook it as section 465 (d) carryover. Turbotax did not allow me to remove it. How to correct this mistake?

  • March 29, 2025
  • 1 reply
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This carryover loss shows twice on the 2024 return. I was trying to remove it from section 465 (d) carryover but it keeps showing up there without being removed.

    1 reply

    PatriciaV
    Employee
    April 3, 2025

    Your best option is to delete this entry from the rental property profile.

    1. Go to Rental Properties and edit your property.
    2. Follow the interview to the page "Do any of these situations apply?"
    3. Verify that you have checked the box next to "I have at risk losses carrying over from 20XX" then Continue 
    4. The next page is At Risk Loss Carryovers, Clear the amount in the Sec 465(d) carryover box.

    If you are unable to clear the amount that you have entered, you can clear this by entering a negative "Miscellaneous" expense in the Other Miscellaneous Expenses interview of whatever activity generated the 465 carryover. (Describe as "Section 465 (d) carryover offset."

     

    A Section 465(d) carry over is not a current deduction. The amount under Section 465(d) comes from previous losses that were carried forward into the current tax year to offset related income (if any). If you generate a loss and you are not "at risk" for those losses, they are carried over to offset future income. Any carry over you see in this year would have been generated last year and brought forward to your current tax return.

     

    TurboTax cautions you against entering the carry over again this year - since the program automatically enters the amount from last year.

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