First year landlord...schedule E amount is not showing up on 1040 schedule 1 (Line 5)

Hi,

This is my first year entering my real estate assets as I rented a purchased property last year.

I did a cost segregation study and entered my assets for Real estate property, Land improvements, and Appliances etc.

I picked 80% bonus depreciation and I see a large negative Net Income of $-37K which is good (I think).

Anyhow it is not appearing on the 1040 Schedule 1 Line 5.

Any ideas why TurboTax is not copying over the amount or what might be stopping it.

Thanks

Mark

392

Level 15

Feb 13, 2024 7:45:04 PM

look at form 8582. under code section 469, except for real estate professionals, real estate rental activities are passive. current deductibility of these passive losses can be limited to zero if there is no active participation in this activity or if your modified adjusted gross income is over $150,000 ($75,000 if married filing separately).

if you have more questions, since you are asking from LIVE for which you paid extra, contact support.

with all this rapid depreciation, losses in future years as long as the rules don't change will also be subject to non-deductibility. The only way to get the benefit of these suspended losses is either to have income from the property or to dispose of the property in a fully taxable transaction which would result in depreciation recapture 1245.1250. if you do a 1031 exchange any suspended losses will carry over to the replacement property and so will the depreciation previously taken on the exchanged property. the point is rapid depreciation can put you in lower tax brackets initially, but as it decreases you can be put into higher and higher tax brackets

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First year landlord...schedule E amount is not showing up on 1040 schedule 1 (Line 5)