turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

RKG2
Returning Member

Passive Activity Real Estate Loss Carryover showing on Schedule 1

Hi all.  I have moved to Turbotax Home & Business for the first time this year.  My prior taxes have always been completed by a CPA.  So I have to enter everything manually and I"m trying to figure out how TurboTax works.  
My husband has his own business and we fill out a Schedule C.  I was unemployed this year so our combined net income looks much different than it did last year.  We have a rental house that we have completed a Schedule E for every year.  We have passive loss carryover that has been moving down by about $10K each year as we net it against our net income from the property.  Form 8582 on last year's taxes shows we had an allowable loss of -$10,760 (Schedule E Line 22) and a remaining carry forward of -$83,380 (Form 8582). 

As I work on 2023 taxes, our rental has a net income of $9,900.  I said I had passive losses to carry forward from prior year and I put in the $83K in losses (though TT suggests it is from Schedule E and that is not the case so maybe I shouldn't have put this here?)

I would have expected to net my $9,900 income for 2023 against my unallowed losses from prior years. My 8582 Part VIII in Turbotax shows Losses -$83,380;  Unallowed Loss -$73,480;   Allowed Loss -$9900.  However, strangely, my Schedule1 (which didn't have anything on Line 8a in prior year) now shows a Net Operating Loss of -$83,380 which is reducing my husband's self employment income (plus a little unemployment income for me) to a very low AGI.  I think I must have done something wrong in TT and I don't know where I need to adjust. Please help.  Also, I have no idea if I should check that I am an active participant.  Maybe the checking/unchecking of this box is causing an issue?  We fully own the property as it was my home before marriage. There is a full-time tenant.  We manage the lease and address any repair/maintenance needs the tenant needs. 

Thank you for your help!!

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

Passive Activity Real Estate Loss Carryover showing on Schedule 1

when yo get to schedule E you have to wait until you get to the passive loss section of the interview to enter the carryover.

In forms mode, there is a specific section on the Schedule E worksheet to enter the PAL. scroll down until you get to the section with the header"Carryovers to 2023 Smart Worksheet" It will be line G

 

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies