JamesG1
Expert Alumni

Get your taxes done using TurboTax

'At-risk' and passive activity losses can be quite complex.  Are you reporting Schedule E rental income?  I'm sorry, I cannot read the numbers on your screenshot.

 

This TurboTax Help states:

 

What are passive activities and how do they affect me?

 

As a general rule, rental properties are, by definition, passive activities and are subject to the passive activity loss rules. These rules are quite complex. In general, the passive activity rules limit your ability to offset other types of income with net passive losses.

 

 

Have tax returns from previous years computed these entries and carried them forward to the 2020 Federal 1040 tax return?  Is that what you are seeing?  You should be able to verify these numbers by going to the previous year's tax return.

 

QBID loss is similar in that these entries have been computed from previous years tax returns and also carried forward to the 2020 Federal 1040 tax return.

 

Please do not override these numbers until you understand what is happening to your tax return.  And please write them down or retain a screen shot should you override them and need to return to these numbers.

 

QBI passive carry-forward is the amount of the Qualified Business Income Deduction that is is not allowed due to the passive income rules. The rules related to calculating the Qualified Business Income Deduction were recently changed and the IRS is still working on approving the form for filing. 

 

This IRS Publication 925 states:

 

Definition of passive activity loss.

 

Generally, your passive activity loss for the tax year is the excess of your passive activity deductions over your passive activity gross income.

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