You will report passive income and losses on the Schedule E. Per, the IRS, "Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs)". To report passive income follow these steps:
- Sign into TurboTax
- Search for Schedule E
- Click the Jump To Link
- Answer Interview questions.
Passive losses will only offset passive income. You can enter the passive loss in TurboTax and if it exceeds the loss for the income in the current year, the loss will be carried forward to the next tax year.
For more information, see the links below:
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