The steps you take to enter your carryover passive losses will depend on which TurboTax product you are using. In TurboTax CD/download, you enter passive carryover losses as follows:
- After opening your return in TurboTax, select the Business tab.
- Under Business Income & Expenses, scroll down to Rental Properties and Royalties and select Start or Update.
- Respond to the various screens. When you get to the Rental Summary screen, select Property Profile.
- On the next few screens, you will enter some basic information about your rental.
- On the screen, Do Any of These Situations Apply to This Property? select the appropriate option under Carryovers.
- Continue through the rest of the application and you should see the screen, Passive Losses From Prior Years.
- On the aforementioned screen, you can enter your carryover passive losses.
- Continue through the rest of the application.
If you are using TurboTax online, follow these steps:
- After signing in to your account, select Wages & Income in the left margin.
- Scroll down the screen to Rentals, Royalties, and Farm.
- Select Rental Properties and Royalties (Sch E)
- Unlike TurboTax CD/download, from this point forward, you will have to act as if you rented the property even though you did not. In fact, if you indicate on the relevant screen that the property was not rented in 2022, TurboTax will assume you have nothing to report.
- After you enter information as if you have rented the property during 2022, you should see a screen which will indicate, among other things, that the application will address Less common situations, such as carryover losses.
- On the screen, rental property info, scroll down and select Carryovers, limitations, at risk info, etc. and enter your information about your carryover losses.
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