@rschaddock78 wrote:
Does anyone know what turbotax product would support a self rental? I have a residential rental that has a loss and now have commercial self rental that has a gain. I need to keep the residential losses from being able to offset the commercial self rental gain. Other products I have seen won't do this so I would have to manually change worksheets. I also have schedule c income and k-1 partnership income but most every product that would support self rental will support those incomes.
As far as I know, this program should be able to do this correctly. As I think you are indicating, the profit of the self-rental is non-passive, so the passive loss from the residential would not automatically be applied against the non-passive gain of the self rental. I am quite surprised that other software does not do this. Perhaps you entered it incorrectly?
However, be aware that if your income qualifies, you would deduct up to $25,000 of losses from the residential rental, which would offset any non-passive income. If your income qualifies to do that, there is no way around that, and you must use that loss.
There is NO need to set up an LLC or a S-corporation. Please do NOT do that without sitting down with a tax professional and/or business attorney.
