I finally have a profit on my rental property in 2024 and my carry over losses are not being applied. How do I get Turbo tax to apply my carry over losses?

[PatriciaV]

You may wish to review the passive loss carryovers reported for your rental property. This entry page is found under the Property Profile section of the Rental Property Summary. Look for a question like "I have passive activity losses carried over from last year." Check the box and TurboTax will ask you for the carryover amount later in the interview.

Note that some users this year experienced missing carryover amounts when transferring their prior year return to the current tax year. We don't expect this to occur again in the future.

[karen_m_farmer]

There is no question asking about whether I want to applycarryovers.  The tool does ask if I _have_ carryovers and when I say yes, I can see them on the schedule e regular tax carryovers, schedule e  alt min carryovers, and the schedule QBI carryovers.  Did the tool import them to the wrong line?  They seem to be there yet are not being applied so I am not sure what I need to do to over ride this bug?

[karen_m_farmer]

Any answer on this?  I was unable to file my taxes and had to file an extension to avoid paying unnecessary extra taxes.  Can someone please explain how I get Turbotax to apply my carryover losses properly?  I went back and turbo tax has always been applied these carryovers.  This year it did not and I want to know if there was some sort of change in tax calculations or if this is a bug.

[PatriciaV]

It's possible the prior year carryovers were not transferred properly to your current return. Reviewing the following forms may explain why the carryovers aren't being applied to your passive income.

The calculation of passive loss carryovers applied to current income appears on Form 8582 Part V. You can also see this on the Schedule E Worksheet for the rental property in the Activity Summary Smart Worksheet. The worksheet is a TurboTax form (not IRS).

If you're using TurboTax Desktop, you can view these forms using Forms Mode (Ctrl+2 or Forms>>Open Form or the Forms icon).

If you're using TurboTax Online, you'll need to download a PDF (be sure to check the box for all forms and worksheets). See How do I get a PDF of my return?