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Question

Turbotax asking for Schedule E Passive Operating Loss on rental property

Forum|Forum|1 year ago
February 19, 2025
8 replies
0 views

We have a rental property and when running a final check on federal, Turbotax says: "Schedule E worksheet: Passive Operating Loss must be entered." And shows a blank box for me to enter a number.

I have zero clue what to put here -- I'm assuming this is something that Turbotax should be carrying over?

Saw a similar question and reply but still don't know what to put down based on last year's Schedule E.

Thanks.

PatriciaV

Employee

Passive Loss Carryovers for Rental Activities are not reported on Schedule E. You will find the carryover for prior years on Form 8582, Part VII, column c. If you have always made a profit, this number may be zero.

You can also see this carryover on the Schedule E Worksheet for your rental property. Look for "Carryovers to 2024 Smart Worksheet" (for a tax year 2024 return) after the QBI section under Line 22. The suspended loss is reported on Line G of this table.

While TurboTax normally transfers carryovers from last year to your current return, it's possible this function wasn't successful for you this year. But the forms should give you the entry you need.

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bb106Author

I tried that and it still gives an error message: "Passive Operating Loss ...sum of losses in individual years should not be greater than the total loss."

All of this has always been automatically filled in/calculated by Turbotax and I've never manually entered any of this info.

So...I'm at a loss (pun intended).

Any help would be greatly appreciated.

PatriciaV

Employee

In that case, you need to double-check your loss allocation entries to be sure there is not a rounding issue that is causing your individual losses to be more than your total loss reported.

If so, adjust the most recent year so the sum matches the total calculated by TurboTax.

Example:

2019 = (2001)

2020 = (4001)

2021 = (3001)

Total of individual years = (-9003)

Total per Form = (9002)

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dana2004

Same problem, I just entered 0 and it seemed to work.

chriswa1

I entered 0 after TT indicated "Maximum value is 0". I did not attempt to enter a negative number since the losses on form 8582 are expressed as positive values, perhaps I should have.

dove11

right I think that's the answer, you should have, since loss should be negative, but in TT they expressed that in the colum as "unalllowed loss"

We688

I’m having exactly same issue here in NY. And if I go to the “Forms” Schedule E worksheet it appears to me that previous year showed 2022 (but NOT 2023), then 2021, 2020… last year 2023 is missing.

What is the solution ? Waiting for a fix.

Thanks, Mario

We688

What is the solution ? Waiting for a fix.

Thanks, Mario

PAW83

Just wanted to remind the group that I posted the solution above, which is the only solution right now.

1) Buy turbotax desktop (I paid about $115 for Federal+State).

2) Import your online work to the desktop version (you don't lose progress)

3) Run the federal check/review (assuming you were basically done with federal inputs)

4) Fix the entries manually (can only do this in the desktop version)

Done!

jnk7711

Well that settles it, this is my last year using TT. Bye Felicia

ddev1

Same issue here. Handling rental properties is the only reason I use TurboTax. Given the lack of a solution or guidance thus far I'm really starting to question whether I can even trust the data in my returns over the past decade.

Frank_MA

Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. For some reason, the disallowed loss tallied all previous years disallowed loss and ignored amount treated as carry over in following years after disallowed. The disallowed should be counted as carry over. The disallowed amount in 2023 is basically calculated wrong and not following tax laws. That trickles down to 2024 worksheet. You have to manually check if they calculate right before you set all error place to zero.

Brian1255

Can you provide instruction on how to access prior year Schedule E and its worksheet?

Thank you.

preetpuri23

Any update on how to fix this? Having same issue and no clue how to move ahead?

Frank_MA

Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. You have to manually fix it.

I use turbotax desktop version.

Instead of using step by step filing, go to top-right corner, click on the forms, look for the rental property Schedule E work sheet, check line 21 and 22 numbers, that is your loss and allowed loss. In the carryovers to 2024 Smartwork sheet, that is QBI value calculated from previous years. Check all previous years QBI and carry over, to see if there is any left over to 2024. You can see QBI tracking sheet of previous years following this table. I saw Turbotax do messed up on 2018/2019 but correct later on. Don't know why the software messed up again this year. In my case, previous two year QBI number is zero, so I can set my QBI number, error check identified cell, to zero.