While running checks before submitting, TurboTax is asking me to enter passive operating loss for a vacation rental property. Where do I get that number from?

Forum|Forum|1 year ago
February 9, 2025
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TurboTax has all my info for the last decade including the carryover losses. Not sure why it is asking for this and not sure where on the schedule E worksheet it goes.

DavidD66

Your prior years' unallowed passive loss would be on Form 8582 Passive Activity Loss Limitations. If you had prior years' unallowed losses, they would be on your 2023 Form 8582, Part VII, column (c), and also Part VIII column (b). The unallowed loss should have carried forward to your current year's Form 8582 Part IV, column (c), and then flow to Part I, line 1c. Your deductible rental real estate loss, if any, would be on Form 8582, Part VIII, column (c). This amount goes on line 22 of Schedule E. The program should do that.

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bidobeanAuthor

Thank you for your response. This is what I ended up doing. The real issue is that TT should have handled this - they have the information from last year's return. What made it frustrating is:

- It said "Passive Operating loss must be entered". Nowhere on my last year's return, does it have the verbiage "Passive Operating Loss". TT should use the terminology in the actual tax return. You correctly identified it as Passive Activity Loss.

- In addition to the message above, it displayed the Schedule E worksheet where it expected me to populate the data they wanted. The problem was, nowhere in the worksheet did it use the term "passive operating loss", it didn't show be what field it thought needed to be populated, and there were probable over 100 fields in the worksheet to choose from.

Because of these two items, I was clueless as to what they actually wanted.

TT should have completed this on its own - that's why I'm paying to use this software. Any idea how to notify them of this problem?

Thank you for your help.