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A qualified business income (QBI) loss would be a loss you sustained on a business activity. The business activity could be from a business conducted by you as a sole-proprietor, but could also be from ownership you have in a rental activity, or an S corporation or partnership, evidence by a Schedule K-1 entry on your tax return.   The loss could be sustained in the current year or carried over from a previous year. Since you reference passive losses, it is likely from a rental activity or a passive investment you have in a partnership or S corporation.    You can look on your previous year Form 8995 to find the QBI loss carryover to the current year on lines 16 and 17. If the loss is just from the current year, it would likely be the loss listed on your Schedule E, page 1 for rental activity, also on page two for Schedule K-1 entries. If you have a current year loss, you would have to add it to the carryover loss from the previous year.    

You are being asked about property insurance regarding your Catastrophe Savings Account to verify if you are eligible for any  tax-deductible contributions. Some states like Alabama or South Carolina require you to have a homeowners policy covering hurricane/wind damage to qualify for this tax deduction. TurboTax is checking to see if you have the required insurance to qualify for this tax break.    If you do not have a Catastrophe Savings Account and you are being asked for property insurance in reference to it, you most likely answered a question incorrectly in the state interview.    Bypass the question if you can. If not, you can go back to your state's interview section and check your answers. There is a specific question regarding having a catastrophe savings account. The TurboTax screen says "Catastrophe Savings Account" and you can indicate there that you do not have one.   If you have any additional information to share or additional questions regarding this, please return to Community and we would be glad to help you.  

That is one of the things I don't like about Turbotax. Even if you have a good grasp of the actual tax law and how income is supposed to be reported, it can often be mechanically difficult to get Turbotax to accept it and file. Even for something as common as US government bond interest. I have worse problems with about a dozen K-1's to deal with coming up.    Regardless, I have detailed records, so I know what was interest and what is not. I think I will adjust my cost basis to zero out gains on those 2 bonds using the options that TT has so that my actual gains/losses are correct. Then I will "make up" another 1099-int from the same institution so that I can report the interest income in the right category (line 3). When I send in my 1099 supporting documentation by mail, I THINK I will include a description of what I did and potentially my transaction statements from when I purchased those 2 bonds showing supporting what my accrued interest exactly is.    Not sure if it is good idea to give the IRS the extra information, but I think it is better to report ALL my income in the right place, even if done in an odd way.    If I run into problems, I will post back here so that others can benefit from this discussion. Thank you!

First, it's important to enter the date the property became available for rent, advertised and/or marketed for rent. This is the date placed in service whether or not it was actually rented on that date.    As indicated by @CatinaT1 the mortgage interest and property taxes are currently deductible in the year paid if you can itemize your deductions and if the rental was not yet available in 2025. If not, they will not be allowed as an expense or startup cost in 2026. These expenses are allowed as rental expenses once the property is available for rent .    If your date placed in service is 2026, then here is some information about the startup expenses: Pre-rental expenses. You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent. IRS Publication 527 (page 5) @nerobins 

If TurboTax is not letting you continue, you can try the following: Go out of your program and go back in. Clear your cache and cookies. Try a different Web Browser. If you are using TurboTax Desktop make sure all updates have been run on your program. You can do this by clicking on "Online" in the black bar across the top of your TurboTax screen. And then select "Check for Updates". If you have any additional questions or information regarding this please return to TurboTax Community and we would be glad to help.

This is again why TT should be doing the work, so that it's done properly and isn't a guessing game as to where it goes and what the appropriate numbers are.    WHY IS IT TAKING THEM SO LONG TO FIX THIS?

@Aussie wrote:   The last clarification I need is if I put the vehicle into service 2 years after purchasing the vehicle (100% personal use for 2 years, then partial time business use in years 3+ and only ever claimed the Standard Mileage Rate, what do I use for Cost Basis, the original purchase price or an estimated FMV at time the car was placed into service?   I thought I had mentioned this to you before and you said you already did it, but because your first calculation ended in a loss, you need to re-do the calculation using the FMV (and the business percentage since it was converted to partial business use).

The state and local sales tax deduction can be a deduction you can take if you itemize on their federal return.  TurboTax will ask you about it, if you indicated that you are itemizing and you want to deduct your state tax.     What is the State and Local Sales Tax Deduction? Which deduction should I choose, state and local income tax or sales tax?  

You need to adjust your entries in the federal w2 section. Go back and edit your w2. Understand that the federal and state governments already have a copy of your w2. You need for the program to put things in the right place.    To tell the program,  adjust your state and local entries on the w2 for you to have the right income and taxes on each state form. Your nonresident state should list the wages and tax for that state. Your resident state should have the rest of the wages and tax for that state. Your resident state automatically taxes all income so you do not want the full amount listed on your w2. Example: earn $100,000 at work in 2 states NR state $75,000, tax withheld Res state $25,000, tax withheld Adjust amounts as needed to make the program give you a correct tax return.

@rlaub wrote: But this is not really a case of excess real estate taxes.   The program is adding the total real estate taxes (not the allocated portion) across both forms and saying it exceeds the cap.     Yes it is, that is excess real estate tax.