Review Circle: K-1 passive operating loss sum of losses in individual years should not be greater than the total loss

[tmf5]

Hi -

I keep getting circled back to the same review question - even after trying several things.  The review statement is:  passive operating loss sum of losses in individual years should not be greater than the total loss for the K-1 Limited Partnership.  Going back and checking the information provided in this year's and last year's K-1s, the information I entered is correct.  But TT is telling me that I can't exceed the amount that was listed as last year's loss.  I tried putting this year's loss to zero so that the total matched last year's loss but that didn't resolve the problem.  I then noticed that there was a $2 difference in a loss number as provided in last year's K-1 box 1 and in the Section 199A statement - so I also corrected/changed that in case it was the problem, but I still get circled back to the same review.

I have no idea how to get out of this loop and would appreciate any information folks may have.  Thank you!

[PatriciaV]

Since you have made at least one correction, it's possible this is browser-related. Please log out of TurboTax, refresh your browser, and clear your cookies and cache. Then restart your browser and log into TurboTax and run Review again.

For more help, please see:

• How do I delete cookies?
• How to clear your cache

[tmf5]

Thank you!  I did just try that and then tried opening TT in a browser I never use - and I am still getting the same review question.  I've checked all of my K-1s for this partnership back to 2018 and have entered everything correctly so I have no idea why TT is saying something is wrong - or how they even came up with the "total loss" since it is exactly last years' loss, not all losses combined.

I've continued forward and it appears TT may let me file without resolving the issue (I hope!).  That's likely what I'll do....

[tmf5]

Further research indicated I would not be able to submit my taxes without resolving the review question.  The only way I could figure out to do that was to edit the carryover loss K-1 information and zero out my losses in 2018 and 2019 (2020 and 2021 did not have losses) in order to make my entries (which were correct) match the total that TT decided was the total.  Seems bizarre that I had to rewrite history and ignore prior losses - luckily small - in order to file my taxes.  Seems to me TT is making an error in calculating total carryover losses but at least in the online version, you cannot correct their total.

[BigRedDg]

I have this exact same issue.  I also had it last year and I spent two hours on the phone with a representative to repair it.  We basically just tried various changes to the K-1 form until we found what worked.  This year, the same issue and I cannot remember what we did exactly last year.  I tried this repair and it worked, although I wonder why I have to wipe out my losses from the previous year to accommodate?  What will be the ongoing effect from this reporting modification?

[NYCBrooklynJ]

I am having the same issue, using the desktop software one Mac OS. Is there a technical update to resolve this?

[PatriciaV]

When you run Smart Check, TurboTax will present a section of Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Disallowed Passive Losses by Year and Type. For some properties, the carryovers are out of sequence. For instance, 2022 is on the 2021 line. Or the 2023 number is on the 2022 line. 

NOTE: Please use the Chrome browser to access this table when running Smart Check.

To fix this, enter the correct number starting with the most recent year. Then move up the schedule until all years are correct. This may be easier if you can access your 2023 return and print the Schedule E worksheet.

We are not aware of an estimated date for this experience to be revised before the tax filing deadline. The ultimate fix is to 1) clear and start over in TurboTax Online or 2) transfer your 2023 return into a new 2024 return using TurboTax for Desktop.

@NYCBrooklynJ 

[TechSuport]

I'm not sure how to link back to my last post, but I just tried looking at the problem through Forms view.  What I'm seeing is 2023 (no errors) TT has page numbers 1-8 (upper RH side of each "page" (questionable if you're thinking "letter" size paper).  On the other hand, TT 2024 only had pages 1-5.  Page 7 is where the "Disallowed Passive Losses" are being tabulated.  It's not just a matter of more content on different pages either.  The section isn't even present.  I imagine along with whatever else is on those missing 3 pages, but I'm only dealing with 1 error that seems to come out that region.  If 2024 doesn't have a page to make a comparison from, that would explain a lot why we get the same error regardless of what number we manually enter through the error dialog box.  It seems to be present there only, but not in "Forms" view which you would think is the complete listing TT intends to submit.

BTW - Working from the Desktop version.  Whatever TT $60 charge is (/hr?) I'd like about $180 for working to solve this.

[PatriciaV]

It would be helpful to have a TurboTax ".tax2024" file to test this issue further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose Share or Help.)

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
3. Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you.
4. Please include any States that are part of your return - this is VERY important.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@TechSuport 

[cucumber7383]

How do we get to this form and fix the issue using TurboTax online?

[PatriciaV]

In TurboTax Online, you must make any changes in the sub-form presented with the Smart Check message as detailed previously in this thread.

If you wish to share your tax info for further investigation, please follow the instructions for obtaining and posting a token to this thread.

@cucumber7383