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Fundrise eFund threw a curve ball to Turbo Tax, which prevents eFiling! Gripe!   Fundrise is finally phasing out K1 and K3 statements, and is (behind the scenes) restructuring their eFund. According to the letter that comes with the K1 package in 2025: 2025 Final K-1 Tax Package IMPORTANT: The following information in this cover letter is for informational purposes only and is not individualized. It does not take into account certain information regarding your personal tax circumstances and should not be relied upon as tax advice. Enclosed in this package is your individual tax document pertaining to your investment in the Fundrise eFund. As an investor, you are required to report certain information about your investment as part of your 2025 taxes. Due to its merger with Fundrise Equity REIT, LLC on December 29, 2025, this is the final tax year and final K-1 for Fundrise eFund, LLC and you will not receive any future K-1s from this fund. Your 2025 Schedule K-1 reflects your share of income, gains, losses, and other tax items through the merger date. No future K-1s will be issued for Fundrise eFund, LLC. Form 7217 Notice: Your Schedule K-1 reports an amount in Box 19, Code C (see footnote statement for details). You may have an additional filing requirement (Form 7217) to report your receipt of Fundrise Equity REIT, LLC stock due to the merger transaction*. Please consult your tax advisor* (God do I hate that legal boilerplate!) - But the key is that K1 Box 19 has a letter C which means you have to read the detailed statement to find the adjusted bases of some stock transfer. Even my tax advisor cant figure this out. Bottom line here is this throws Turbo Tax into a sort of a WTF state. it has no Form 7217, so it just does the CYA of pointing to the IRS web site. Plus if you report it on the K1 input form in TurboTax, it wont allow you to EFile. This is a big deal if you have a 1000 page long Federal Return. Also from what I can tell putting a positive number (say $8000) in the TT Input box 19 with C reported does not change the amount of taxes due (the little box on the top of the Turbo Tax screen). So you, the tax filer have a choice: follow TT's advice and *NOT* EFile (though you paid for it when you bought their product) or (heaven forbid), pretend that box 19C was blank or that you missed it somehow. The end result with the second option is that you didnt follow the instructions, even if it makes life easier for the IRS and you. The net amount of tax paid would be the same. It's just the IRS's new rule that a form 7217 must be filed if letter C appears in that box, and the fact that Turbo Tax does not support form 7217. Furthermore TurboTax fixed that problem by making it impossible to eFile if you have a number in there. Therefore the only logical thing to do is to not report that number, and let the IRS figure it out if they have to. You might end up getting a letter and a penalty, but printing out a 1000 page form and mailing it in might take them months to scan and analyze. What would you do? By the way, the blame should fall on TurboTax to fix this flaw in their code and add that form. And the IRS rule is the law.   =

If you received the proceeds through the estate, the estate should have reported the sale on its 1041 and you should have received a K-1 for your share. However, it is possible that the estate paid any tax due.   Contact the executor and inquire.

@rkdehaan    Others may be able to think of something else But the only one I can think of for 2025 taxes is a QCD from an IRA distribution, for people age 70.5 or older. ________________ The one you might be thinking of is a 1000/2000 charity deduction (for those that take the Std Deduction) that starts with 2026 taxes that you file next year.  

@emt7 If you imported the W-2 and the code in box 12 is incorrect then you need to delete the W-2 and re-enter manually.   DD—Cost of employer-sponsored health coverage. The amount reported with code DD is not taxable.

So I deleted the K1 and Form 3468. Started from scratch.    The only questions on Turbotax Home & Business (Mac) are:  1) Did you actively participate? - Yes 2) Do either (or both) of the above conditions apply to the rental activity for this LLC? - Yes. Apply the special handling rules to this rental activity. 3) Does this rental qualify as a trade or business? -Yes   Adding in the credit it still does not appear on Form 3800 Part III 1v. When I go to Form 8582 it shows the business there as 2025 Passive RE. So there seems to be some issue on forcing this to be active non passive.    When I open the forms for the K1, the following boxes are selected:  Box 2:  Check if materially participated in rental real estate activities - checked Check if "actively" participated in rental real estate activities - checked Check if rental of property is a type subject to recharacterization rules - checked Check if rental real estate activity is a trade or business - checked   It's almost as if because business activity type is Rental Real Estate that it automatically assumes passive. Section A of the K1 shows at the top Classification "Active RE".     

If you are filing as Married Filing Separately you are not eligible for the deduction.  If you are Single and your AGI is over $175,000 or Married Filing Jointly and your AGI is over $250,000 you are not eligible for the deduction.   If you are age 65 or older and meet the requirement, the additional deduction is automatically added on your federal tax return.   Standard deductions for 2025 Single - $15.750 add $2,000 if age 65 or older Married Filing Separately - $15,750 add $1,600 if age 65 or older Married Filing Jointly - $31,500 add $1,600 for each spouse age 65 or older Head of Household - $23,625 add $2,000 if age 65 or older   New Bonus Standard Deduction (OBBB): An additional $6,000 deduction for taxpayers 65 and older. This is per eligible individual, meaning a married couple both over 65 could get $12,000. Important: This bonus deduction is temporary, lasting from 2025 through 2028. Income limitations: It phases out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers. The amount is calculated on Schedule 1-A, Part V, with that amount flowing to Form 1040 Line 13b Look at your Form 1040 - You can view your Form 1040 plus Schedules 1, 2 and 3 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

thanks for your reply! the previous tenant moved out, it took couple months to repair and rent out, that's why the income doubled, but the rental property depression should be same right, but turbotax shows this year is much higher, do you know how can I fix it to show the same amount like last year for asset depression? thanks

That was me in the other thread. 🙂 I had been searching around for threads detailing similar issues. For the people who visit this post in the future, I begrudgingly reset my entire return to solve the issue. I would try Bill's advice about the HSA reset first. Unfortunately, it didn't work for me when I tried it a few days ago (I might have missed something).   My advice: Take your time before entering values you don't thoroughly understand as you might not be able to change them later. Also, avoid entering "placeholder" values for info you do not have on hand. That's the trap I fell into.

@Oldblue    It should show up in the menu summary amounts as income $$ that you "entered" into the software But ....if you look at your actual form 1040, your line 5b $$ amount should be lower than line 5a, and the "rollover" box  (5c) should be checked.   IF those same $$ are included on line 5b, then perhaps you indicated it went into a ROTH IRA.....if you did xfer to a ROTH IRA.... then those $$ do become taxable.