Investors & landlords
It depends. it's not clear exactly what the question is in TurboTax you are looking at. Also, whether you are using TurboTax Desktop or TurboTax Online.
Essentially you have a passive activity that has limitations on the amount of the loss you are allowed each year based on your income level. If you are limited you do have a passive loss carryover (not nondeductible expenses) and it will carryover in TurboTax. However, you need to be certain and check the entry. In the Property Info or Property Profile you would answer a question about whether you have a passive loss carryover (Form 8582 in your prior year return will provide this information). See the image below.
A different situation would occur if you were not renting property for a profit, whether or not you have one. In this situation your expenses are limited to the income and there is no carryover.
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