I'm using TurboTax Family and Home 2024. I had an unallowed rental income loss (passive income loss) from last year that I couldn't take because my income was too high.
This year, my income is below the threshold, so I can take the passive rental income loss (as calculated by form 8582), but for some reason TurboTax is putting last year's unallowed rental loss on this year's net operating loss (Schedule 1, Line 8a). The program states, "Here is your allowed net operating loss (NOL) carryover you previously entered from your 2022 return."
This is incorrect, because that is not a net operating loss. It was a passive income loss, subject to the calculations of form 8582 and is included on Schedule 1 Line 5 (Rental real estate, royalties, partnerships, S corporations, trusts, etc.) But I cannot figure out how to override this in the program, since it is automatically entered.
How can I remove this amount from the Net Operating Loss line?
