Help!
I am using Turbo Tax for the first time.
I entered my previous years prior to Passive Losses $17K
When it calculates Sch E, the full amount of the prior years of carryforward losses is deducted against current year income as Other Expenses – this creates a $14K loss for this year’s reporting.
Now my Form 8582 shows on Worksheet 1: 1(b) Current Year loss of $14K, 1(c) Prior Years Unallowed loss $17K and now 1(e) Loss of $31K. Is this right?
Feels like it is counting the prior years unallowed losses twice now.
Does this mean my next year’s Sch E now show a $31K Other Expense?
I was thinking it should look like this year's Sch E would calculate a $3K Gain this year.
Then my Form 8582 would look like Worksheet 1: 1(b) Current Year income of $3K, 1(c) Prior Years Unallowed loss $17K and now 1(e) Loss of $14K.
Thanks.
