First, let's check if you actually have that large of a loss.
- Was it always a rental, or was it previously a personal property?
- If it was previously a personal property, was the Fair Market Value (FMV) when you converted to a rental less than what you had paid for the property? If so, you use the FMV as your basis for the loss, not your Cost Basis.
- Are you factoring in the depreciation? That lowers your "basis", which will decrease your loss.
Assuming you do have a loss, your rental loss is not limited to $3.000. The entire loss goes on your current year tax return, and will offset other income that you have on your tax return.
If you don't have enough income to offset that loss, Line 41 of your Form 1040 will be negative. That would create a "Net Operating Loss" (NOL). If you do not want to carry your Net Operating Loss back two years, yes, TurboTax will ask you if you want to "waive the carryback" of the NOL. When you print out return, you will see a separate piece of paper that shows that election to waiver the carryback per section 172(b)(3).
I am unsure if TurboTax automatically carries that number to next year, if you have a NOL and you "waive the carryback", be sure check if it is on your tax return, or enter it on the tax return next year (it shows up as a negative number on Line 21 of your Form 1040).
