Thanks everyone for the replies. Let me try to be more specific. Assume I have $100k of passive activity loss carryforwards available and I'm an Active RE participant and my MAGI is below $100k. I know I am eligible to offset up to $25k through the Special Allowance against nonpassive income. My issue is that I don't need to use $25k of my loss carryforwards because it puts me into a negative taxable income position. Assume I only need to use $10k of my $100k carryforward. I don't see a way to do that within TurboTax. It just takes the entire $25k Special Allowance amount and then reduces my $100k loss carryforward down to $75k. In my mind it is just a $15k waste ($25k that was used vs $10 that I need) of my loss carryforward.
Help?
