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RJO
Level 2

How to change 465(d) carryover from prior year

I'm using Home & Business for the first time this year (2019 form) because I started a business in 2019.  Under Miscellaneous Expense, I see a carryover amount from 2018, but I did not have any business losses in 2018...I didn't even have a business in 2018.  Where is this number coming from, and how do I correct it?  I reviewed my 2018 tax return (TurboTax Premier), looking for the amount that the 2019 version says is being carried over, but it's nowhere to be seen.  

 

Any ideas?

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1 Reply
Irene2805
Expert Alumni

How to change 465(d) carryover from prior year

The figure you see for Section 465 (dcarryover is supposed to be the amount of loss you weren't able to take last year and may be able to take this year.  [A loss that was disallowed because of the at-risk rules is generally treated as a deduction from the same activity in the following tax year (a carryover).[

 

But since the business started in 2019, you shouldn't have a Section 465 (d) carryover from prior years.  You can clear this up by adding a negative "Miscellaneous" expense. Please follow these steps:

  1. On the screen, Your [XX] Business, go to the Business Expenses section and click the Start/Update box next to Other common business expenses.
  2. On the next screen, click the Start/Update box next to Other miscellaneous expenses.
  3. Enter the carryover figure as a negative number and enter the description as Section 465 (d) carryover offset.  

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