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?
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.
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.
I have not received a release on 04/08/2022 to correct this issue. Please advise. Thank you.
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
Alicia,
Has the correction you mention below been released yet?
Thanks for your help.
DVMarsha
Yes, the fix was actually released on 4/7 and TurboTax Online now reports your carryforward losses correctly.
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
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.
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
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?
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?
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?
The rounding issue @BrittanyS is referring to would be if you have losses listed as:
2019 -2001
2020 -4001
2021 -3001 (= -9003)
Total -9002
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.
We are happy to hear that you were able to resolve the issue.
Please let us know if we can assist you further. @jc_2023