Thank you so much for the quick reply. My friend that is also a relative, has bought 10 properties and is involved actively in the Real Estate investmet. Since he has been able to switch the passive losses to active upon acquisition and involvement in real estate, and elected section Section 469(c)(7)(A, it was determined that he can use the forfeited deposit as a business expense. But schedule E on TurboTax has no place to show this. What section or line of schedule E will reflect that? Other expense? TurboTax will not allow it if you don't have a purchase price for a property.
