Rental Income Should Be Active

Forum|Forum|1 year ago
October 25, 2024
2 replies
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I am a licensed Real Estate Agent, I manage my own rentals (long term and short term), I also complete many of my own repairs. Turbo Tax has my rental income on a Schedule E. How do I move that over? I have carryover losses from when I purchased the Triplex in 2022. I do not want to lose them, but I am absolutely actively participating in all parts of this property.

TurboTax Deluxe Online

VolvoGirl

Employee

What do you mean "move over" over to where? You need to upgrade to Premium to enter rental or business income and expenses.

masseyinvestments559Author

My rental income/losses need to be active not passive. Therefore, not being limited. I am not sure how to ensure it is counted as active.

Anonymous_

Employee

No text available

AmeliesUncle

It correctly is on Schedule E (unless services are provided to the tenants, such as maid service or meals).

If you qualify as a Real Estate Professional (see link below), make sure you have told that to TurboTax. Then you will also need to determine if you "Materially Participated" in each rental activity (if you did, be sure to tell that to TurboTax for EACH property).

If you do BOTH of those, the program should treat it as "non-passive" income (in tax terminology, "active" not the opposite of "passive").

https://www.irs.gov/publications/p925#en_US_2023_publink1000104591

https://www.irs.gov/publications/p925#en_US_2023_publink1000104581