TT software keeps bringing me back to Passive Operating Loss concerning a K-1 I am dealing with. Keeps telling me sum of losses should not be greater than total?

[dvmarsha1]

I adjusted the Passive Operating Loss to match the amount shown in the question and attempted to continue through the check.  Is this an acceptable approach?

[AliciaP1]

There is a known issue with entering passive losses in TurboTax.  It has been investigated and the correction is slated to be released on 04/08/2022.  Please review your return after this date.

[dvmarsha1]

Thanks for the reply.  I was concerned about not being able to complete my review prior to filing my return.  I will check back after 4/8 to see if I can complete the review.

[kunanrod]

I have not received a release on 04/08/2022 to correct this issue. Please advise. Thank you.

[dvmarsha1]

Hello,

I will attempt to access the software this evening to see if I can complete the review and file my taxes.

Should I expect the software to work properly or are you telling me that the "fix" that was supposed to be in place as of 4/8/22  was not loaded and I will still have the same issue with my K-1?

DVMarsha

[dvmarsha1]

Alicia,

Has the correction you mention below been released yet?

Thanks for your help.

DVMarsha

[AliciaP1]

Yes, the fix was actually released on 4/7 and TurboTax Online now reports your carryforward losses correctly.

@dvmarsha1

[dvmarsha1]

Alicia,

I looked at this return on Thursday and it did appear that the software was working and I was able to complete and file my return.  As of Saturday morning 4/16 I am not able to file and the software keeps directing me back to my K-1 again.  Is the "fix" that was put into place on 4/7/22 still in place?

Dvmarsha

[AliciaP1]

Yes, you should double-check your loss allocation entries to be sure there is not a rounding issue that is causing your detail losses to be more than your total loss reported.

@dvmarsha1

[dvmarsha1]

Hello Alicia,

Thanks for the suggestion.  The exact note I am getting at this time is:

Sch. K-1 Wks-Partnership (230 LTD): Passive Operating Loss...sum of losses in individual years should not be greater than the total loss ($-323.).

The software then offers me a box titled "Passive Operating Loss" 

I have tried changing the number in the box to agree with the number shown in the issue and there appears to be no change.  I think the issue I am dealing with spans back a number of years as this investment is in real-estate and it has been losing money year after year.  Will I need to upgrade my subscriptions to "MAX" and get on a Teams Call with some one to look back through Form 8582 or other history to resolve this issue?

Dvmarsha1

[jc_2023]

I know this issue was posted and resolved in 2022, but I seem to be running into the exact same issue this year. I'm using TT Premier Desktop (Mac), and even when I check for updates it says I'm up to date. When I do the Smart Check if circles me to the same "Sum of losses in individual years should not be greater then total loss" error. And even after I update the passive losses section for prior years, the total doesn't update to reflect any changes. What is the workaround or fix for this?

[BrittanyS]

Can you clarify if you have double-checked your loss allocation entries to be sure there is not a rounding issue that is causing your detail losses to be more than your total loss reported?

@jc_2023 

[jc_2023]

Thanks for the quick reply. I've been only entering negative whole numbers so not sure how there could be a rounding issue. I'm wondering if something got imported/transferred incorrectly from my '21 Taxes?

[AliciaP1]

The rounding issue @BrittanyS is referring to would be if you have losses listed as:

2019 -2001

2020 -4001

2021 -3001 (= -9003)

Total -9002

@jc_2023 

[jc_2023]

I ended up deleting the K-1 entry that was imported from my 21 Taxes and re-entered data from scratch manually and that seemed to have corrected things on my end.