I have a single rental property for which I am an active and material participant. As per the IRS instructions for form 4562, line 11 (shown below) my taxable income should include my Rental Income from Schedule E, Line 3. This is my income without regard to my 179 expense deduction and my operating loss deductions. However, Turbotax Premier 2020 does not include this value resulting in a Business Income limitation. Am I correct in thinking this value should be counted as taxable income? If so, does anyone know why Turbotax is not counting it?
Instructions for Line 11, Form 4562
Individuals. Enter the smaller of line 5 or the total taxable income from any trade or business you actively conducted, computed without regard to any section 179 expense deduction, the deduction for one-half of self-employment taxes under section 164(f), or any net operating loss deduction. Also, include all wages, salaries, tips, and other compensation you earned as an employee (from Form 1040, line 1). Do not reduce this amount by unreimbursed employee business expenses. If you are married filing a joint return, combine the total taxable incomes for you and your spouse.
