Form 4562 Depreciation

[CaddyGrn]

In previous years Turbo Tax automatically fills in a form 4562 for my rental property and also shows a carryover of disallowed deductions to the next year.  For 2020 Turbo Tax did not automatically forward the information to form 4562.  When I search my forms there isn't a form 4562, and TT asks if I want to create a new one.  I have residential rental property and this is the form I have used in the past.  

I have a carryover disallowed deduction from 2019 and it appears on a carryover Fed worksheet, but TT does not like the number that TT carried forward from 2019.  I keep getting an error when going through the error check at the end.  I am at a loss.  Not sure what to do with this, is it a "bug"?  Or am I missing something here?

Thanks in advance for any response.  If my question doesn't make sense, please ask specific questions in return to help me ask the right thing!

[JoannaB2]

If your suspended losses were not automatically applied on your 2020 income tax, it could be that you have business losses in 2020. The suspended losses can't be used towards your regular income. if you're not able to deduct your rental losses,you may carry the total losses forward into future tax years to deduct against future rental profits. These losses can be carried forward indefinitely.  

But, if you do have passive income, you may have to manually enter the losses in Turbo Tax:

• In the Search box on the top right of your screen, enter passive loss carryover, Schedule E and click on find at the right
• In the search result box, click on Jump to passive loss carryover, Schedule E
• The program will take you to the Income from Rentals section. Answer Yes
• Follow the interview.
• The screen Do any of these situations apply to this property? 
• Put a check mark next to "I have passive real estate loss carried over from a prior year " and click Continue i

Passive losses can't be deducted against ordinary income with 3 exceptions:

1. Active participation in the property such as approving tenants and expenditures, and other management duties.
2. Material participation in the property such as participation in the operation of the rental property over 500 hours in a year.
3. Real Estate Professionals includes listing agents, brokers, builders, contractors, leasing agents, and  property managers.

[CaddyGrn]

Thank you so much for your thoughtful reply!  It will take me a bit to digest what you have written and review my return.  Once I have a chance to do this, I will let you know if this solved my issue.

FYI:  I do screen all new tenants, prepare monthly bills, review the rental agreement, and clean the apartments.  But I don't spend 750 hours a year doing this... so I have always figured I didn't qualify for "active participation"... or am I confusing this with something else?  

[CaddyGrn]

Thank you once again for responding to my question.  My "suspended losses" [My section 179 carryover for disallowed deduction expense from 2019] were automatically transferred to my 2020 TT.  However, going through the final check that TT does, it keeps saying that the "Total section of the 179 carryover shown here does not match the sum of the section 179 carryovers shown on each individual activity.  Please review your return and correct the carryovers on the individual activities so that they add up to the total shown here."  The information in the software is working on the Federal Carryover worksheet.

I did try, albeit unsuccessfully, to follow the kind directions you provided to put the term passive loss carryover, Schedule E in the search box, which worked but didn't see how to click on any "find" at the right.  So I wasn't able to follow exactly what you described.  I did go to my current Schedule E, but it did not list anything with a carryover from my 2019 4562 form that I could enter.  So I am still not clear what I can do.