State tax filing
I hate to admit this but I could not find a reason for the rental loss to not be included in the net rental income based on original entries. The only way I could get it to work is to use the desktop version of TurboTax Home & Business and overwrite the "zero" in the rental property loss column and place the checkmark indicating a loss for that property.
If you are using the online version of TurboTax you will not be able to perform the overwrite as I have. If you are using the desktop version the following screenshot shows the screen with the overwrite. To overwrite, click on the Forms icon towards the top right corner of the screen. The forms pertaining to your return will show in the far left column. Scroll down to the PA area and click on Schedule E, Copy 1. Click on the "0" on line 20, column C, then click at the top under "Edit", then "Override" and type over the zero to input the loss of $5,942 and put the checkmark in the box just under it indicating a loss.
I must warn you that by overriding the computed value listed, even if wrong, will invalidate the TurboTax accuracy guarantee. This should not apply to the Federal version but just PA. Of course you have an argument that you believe the number originally calculated was incorrect but there is always the possibility of needing to mitigate the situation.
I have enlisted the assistance of higher ups to add this to the investigation que as this does not appear to be a single incident occurrence.
