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!!
