Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. For some reason, the disallowed loss tallied all previous years disallowed loss and ignored amount treated as carry over in following years after disallowed. The disallowed should be counted as carry over. The disallowed amount in 2023 is basically calculated wrong and not following tax laws. That trickles down to 2024 worksheet. You have to manually check if they calculate right before you set all error place to zero.
I use turbotax desktop version.
Instead of using step by step filing, go to top-right corner, click on the forms, look for the rental property Schedule E work sheet, check line 21 and 22 numbers, that is your loss and allowed loss. In the carryovers to 2024 Smartwork sheet, that is QBI value calculated from previous years. Check all previous years QBI and carry over, to see if there is any left over to 2024. You can see QBI tracking sheet of previous years following this table. I saw Turbotax do messed up on 2018/2019 but correct later on. Don't know why the software messed up again this year. In my case, previous two year QBI number is zero, so I can set my QBI number, error check identified cell, to zero.
