E-filing Amendment

[noviceattax]

Dear All,

Can I file my return amendment for 2024 electronically with TurboTax Home and Business? I have a schedule-E being added and there is rental income loss that I am showing. I missed adding schedule-E completely in my previous year filling.

If paper filling do I need to send all the receipts and bunch of papers?

[noviceattax]

Hello all, any response on this?

Also, if I file my 2025 return now. And then file the 2024 ammendment later, how will it impact me? Will I have to file an amendment for 2025 also again?

[DianeW777]

No, you do not need to file all papers and receipts when you amend your 2024 tax return. Be sure to include any forms that changed or are added and file them with your Form 1040-X and of course follow any state protocols. Sometimes the states want an exact copy of the federal when you file the state (original or amendment).

As for your 2025 return, you do not have to wait for the amended 2024, but you do need to know the cost basis of your assets so they are entered correctly. Be sure to include the rental activity and make sure all assets are included with the correct date placed in service and purchase date. This will calculate the correct depreciation for 2025, and there should be no need for an amendment.

The cost of the rental home and land must be separated. You can use the tax assessments from your local county to calculate the percentage of each.  The home and the land are entered as one asset. If you have other assets such as appliances or something else separate from the house itself you should enter those separately if added to the home in 2025.

• Where do I enter income and expenses from a rental property?

Please update with any additional details if you need further assistance and we will help.

@noviceattax 

[noviceattax]

Thanks, @DianeW777 

The cost of land will be fresh each year. Right?
If all the appliances were under limits and we took them as expenses in 2024 than that will also not impact my 2025 return. Correct?
The home built is an asset and that will be depreciated from 2024 to 2025. Right? So that's the only thing that I need to get the right basis for. Correct?

[DianeW777]

No. Once you decide the value of the land it will not change, it will remain the same cost basis throughout the rental period. The cost of the home and land will be entered as an asset, then only the land the in field asking for the price of the land. 

• Land assessed value divided by the combined total of land and home = percentage of total cost that applies to the land.
• Home assessed value divided by the combined total of land and home = percentage of total cost that applies to the home.

The date placed in service will be used to calculate the depreciation for each year or part of a year.

No, the appliances expensed in 2024 will not affect your 2025 tax return.

@noviceattax 

[noviceattax]

@DianeW777 , Thanks for your response. However, I have one doubt if I have some losses from 2024 rental income, which I am carrying forward. Do I not need to mention that in my 2025 return for it to continue as trail?:

• And if your answer is that "yes, the loss from 2024 needs to be included in the 2025 return", then if I file amendment to 2024 return after filing 2025 returns will I need to file an amendment To 2025 return as well?
  
  • Alternatively, if I now know the loss that will come from 2024 amendment can I anyways include it in 2025 return and file the 2024 amendment later?
• And if you answer is that "no, the loss from 2024 needs to be included in the 2025 return", then how is one expected to maintain the trail of losses?

Please do not hesitate to ask any questions/clarifications you may need. I appreciate your help.

[JotikaT2]

Yes, if your 2024 amended return generates losses that need to be carried forward, you would need to amend your 2025 tax return to reflect the updated carryforward amounts.  However, if you have not filed your 2025 return yet and have just extended those returns, you would not need to amend.  

Depending upon your situation, you would need to either start with that 2024 amended return as the beginning point for your 2025 return so all of the final amounts are pulled in, or you would need to update the carryforward amounts in the rental interview section of the program.  

You will be able to enter any losses under Property Profile section of the rental property interview section.  On the screen titled "Do any of these situations apply to this property?", be sure to select the box for the carryover type, and then hit continue.  You will be prompted to enter the amounts on the next screen titled "Passive Losses from Prior Years".

[noviceattax]

Thanks, @JotikaT2 . 

Let's say I have not filed my 2025 return as of now and I file my 2024 amendment today. Will I have to wait for the 2024 amendment to be processed before I file the 2025 returns? The reason I am asking this is because in my 2025 return I will show losses from my 2024 and if my 2024 amendment is filed but not yet processed at IRS my 2025 return can still get flagged. Right?

So how will I get to know that my 2024 amendment is processed and it is safe to file 2025 return now? Is there an upper limit on the amendment processing (from the day of filing)? If yes, what is it for e-filing and what is it for paper filing?

[JotikaT2]

Possibly.  If you have extended your individual return for 2025, as long as you file it by the extended due date, you should not have any issues.  If your 2025 return is filed before your 2024 return is processed and the IRS notifies you of a discrepancy, you can simply reply to the notice and show that you filed your 2024 amended return on the applicable date, and include copies of those forms affected to support the amounts on your 2025 tax return.  

Please see "Where's My Amended Return?" to check the status directly with the IRS.  You can also check the processing status timeline directly with the IRS website here.