I have a net loss rental income in 2021, say -$10K (for property A $20K rental income and $30K expenses including depreciation), the 1040 line 15 is $500k
however, I found that if I set the income to $10, my taxable income in 1040 line 15 will become $480,010, how could this happen? I asked Turbotax live, and the CPA explained to me it is because that I have over $150k income so all the rental expenses are not deductible. Which doesn't make sense and didn't happen to me last year.
One thing might be helpful is I have sold another property B for a long term capital gain of $150K, I found this is the root cause, but I don't understand why it would affect my other properties' tax situation if they are net loss. Somehow Turbotax thought all my 3 houses are sold. It is highly possible that this is a bug in Turbotax.
Is this a bug in Turbotax?
Any help is appreciated!
