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Level 3
posted Apr 3, 2022 12:09:33 PM

Can real estate rental property loss offset the Net Investment Income? Why doesn't Turbotax include the loss in Form 8960 line 4a?

1) I have rental property loss of $16K that I'd like to include on Form 8960 to reduce my Net Investment Income tax.
2) My 8960 reports my capital gains of 139K. However I've claimed Active Trader status and have investment and home office expenses in Trading of $12K, that I'd like to offset against the $139K.

How do I include these changes to my Net Investment Income calculation? Should I edit the Form 8960 directly, and how (I'm using Turbotax Online)?

0 3 1237
3 Replies
Level 15
Apr 3, 2022 12:14:09 PM

Whatever you need to edit on your 8960 is not officially supported by TurboTax and most likely cannot be done with an online version.

 

If you want to edit an 8960, you will have to use Forms Mode which will require switching to a desktop version of TurboTax.

Level 3
Apr 3, 2022 1:23:48 PM

If these 2 are valid deductions (especially the Rental Property gain/loss is very common), and Turbotax should support these as features (vs directly editing Form 8960).

 - Is there a different way of adding rental property gain/loss to Form 8960 (for Net Investment Income taxes), vs editing Form 8960 directly? (I've already filled and paid for TT-Online. Would prefer avoiding re-working on TT-Desktop if possible)

 

thanks

Kiran

Level 15
Apr 3, 2022 2:33:30 PM

Unfortunately, TurboTax does not support all 8960 inputs and calculations.

 

See https://digitalasset.intuit.com/DOCUMENT/A51oKyg2O/032522-2021-unsupported-calcs-L1FQfTTgn.pdf