A Section 465 (d) carryover refers to the
‘at-risk’ rules of Section 465 of the Internal Revenue Code. Under that
section, your losses are limited to the amount you have at risk in the
activity. 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 (ie. carried over).
The amount you see
for Section 465(d) carryover is the amount of loss you weren't able to take
last year, but may be able to take this year.
If you are certain
you didn't have a Section 465 (d) carryover from prior years, you can
clear this up by adding a negative "Miscellaneous" expense and describe it as "Section 465 (d) carryover offset".
For more information
see IRS Pub. 925 - Passive
Activity and At-Risk Rules
