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fat-guy
Returning Member

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

I have normal carryover from last year due to the passive limitation. But a 465D at-risk carryover appears in "other expenses" section. It is the same amount as my passive carryover. I checked the calculation and pretty sure that the carryover has been double counted. I try to delete the 465D carryover from the "other expense" section. Even I deleted it but it won't disappear. When I go back it is still there. Is this a turbo software bug? And how to delete it?
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6 Replies
ToddL99
Expert Alumni

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

 If you are certain you didn't have a  Section 465 (d) carryover  from prior years (or it is double-counting), you can clear this up by  adding a  negative "Miscellaneous" expense  and describe it as  "Section 465 (d) carryover  offset".

 

A Section 465 (d) carryover refers to the ‘at-risk’ rules of Section 465 of the Internal Revenue Code.  Under that section, your losses are limited to the amount you have at risk in the activity.  A loss that was disallowed because of the at-risk rules is generally treated as a deduction from the same activity in the following tax year (ie. carried over). 

 

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

The response is ridiculous. I have the same problem. I want to find out where I double-entered the carryforward.  I went to "forms" and found that the carry forward items from my prior return was not showing up. So I entered them. Now they are double counted and I can't get back to the form I entered them on. To show an "offset" is a WORKAROUND. I want to know how to FIX this problem.

 

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

I have the exact same issue - TurboTax please fix this otherwise I'll just go and use FreeTaxUSA which appears to be doing this correctly for far less $$$

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

This workaround also no longer appears to function (at least for E-file) because TurboTax keeps telling me the negative offset to the carryover is outside of the allowed min/max. PLEASE HELP!

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

 I made a mistake and entered my rental losses from the prior year as a carry forward and I should not have.  Now I need to remove this entry that is called  SECTION 465 (d) CARRYOVER, and cannot locate a way to remove the erroneous entry and amount.  Please help!  

PatriciaV
Expert Alumni

I have normal passive carryover from last year. But a 465D at-risk carryover appears in "other expenses" section. It won't disappear even I removed it.

Yes, you can remove this entry.

  1. Return to the rental property where you entered the prior year losses. 
  2. Edit the property information and look for a page "Do Any of These Situations Apply?" or a "situations" topic. 
  3. Under Carryovers on this page, there are boxes to check for passive activity losses carried over from a prior year
  4. If this box is checked, continue through the interview and remove the entries you made for passive losses from prior years. Continue to the end. 
  5. Now go back to the situations page and uncheck the box for passive activity losses.
  6. Continue back to the rental summary page to save your changes.
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