Passive Loss Carryforwards California Return

[chriscolten]

When will Turbo Tax update their CA product so that my previously disallowed passive loss carryforwards show up?  I have done my CA returns on Turbo Tax since the beginning of time and as such the program should show those in my 2024 tax return (which it does not).  I pay way too much to Intuit for my annual tax programs to have to resort to manual entry of this information for each of my rental properties.

[AmyC]

Please check forms availability here. The federal and state agencies work their way through the form updates starting with the most used. As they update, we implement the changes.

[chriscolten]

Thanks for the reply.  According to the chart, CA form 3801 (Passive Activity Loss Limitations) is ready and supported.  However my prior year losses are not showing up, even though the show as unallowed losses on last year’s return (which I filed using Turbo Tax).

[chriscolten]

In addition to the passive loss carryforwards not showing up from previous years, the CA depreciation schedules do not show prior (only current) depreciation on assets that we put in to service 2-4 years ago.  As there was depreciation on previous tax returns, this cumulative amount should show in the prior depreciation column, which it does not.  The current depreciation appears to off (too high) as it is noted an DB, which means that the depreciation should decrease (not increase as it shows now) from the prior year.  This leads me to believe that both the prior year and current year depreciation amounts for these assets (for rental properties) is incorrect.

The state of CA product appears to have several bugs in regards to rental properties, calculating depreciation on assets, and previous passive loss carryforwards.  

Right now I have no confidence in this portion of the CA product and I will delayed in filing my return until it is fixed.

[KeshaH]

I'd like to take a look at your return to see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know other states, if any, that are included on the return.

[chriscolten]

Thank you.  

I transmitted my return to you.  

#1431478780-06904066

Thanks,

Chris

[chriscolten]

no other states apply-only CA

[chriscolten]

I also sent my 2023 return so that you can see the amount of the remaining (disallowed) passive loss carryforwards (State of CA-over $130K) that should show up automatically on my 2024 state of CA return, however they do not.

Token #[phone number removed] 43828336

[chriscolten]

Token #1431478780 43828336

[chriscolten]

Your system keeps removing the first part of the token, thinking it is a phone number.

[PatriciaV]

Please post a screenshot of the token number or remove any dashes in the number.

[chriscolten]

[chriscolten]

FYI, even if I remove dashes or add spaces to the numbers your program hides the number and notes it as a phone number.  Your program should not use a ten digit number as a part of its token number.

I have taken a photo of the numbers and attached them.

[KeshaH]

Thank you for sending your token.

Loss Carryovers:

I notice that your federal return does have some loss carryforward to 2024 from the prior year reported, but I agree that the state carryforward schedules is blank. Is it possible that you had an older version of your 2023 tax file saved and that is what was transferred to 2024?

Depreciation: 

- You mentioned within the comments that the prior year depreciation is not populating for several of the assets that were placed in service in the last few years. I looked over the depreciation reports and it looks like the assets that aren't showing a prior year depreciation are assets that you expensed using Section 179 in the year they were placed in service. Since section 179 isn't depreciation, this amount doesn't populate in the depreciation fields.

[chriscolten]

Thanks for looking over my returns.

Item 1 (Carryforward of previous losses):

When I purchased the 2024 product and I started my return in late Jan., I followed the instructions to import my 2023 return.  

You ask me if it is possible that I had an old file from 2023.  I have no idea as the import was done by the Turbo Tax product.  What do I need to due next to try to fix this issue.  I would much prefer that the Turbo Tax program capture the carryforwards as they are from four properties and have complexity to them so I would prefer to try not to manually enter them.

Issue 2 (CA depreciation schedules-Form 3885A):

I sent you both my 2023 and 2024 tax returns.  If you look at the 2023 tax returns and look on Form 3885A, you will see the following:

Julianas Way property:

Assets:

WH

Flooring

AC

On the 2023 3885A, the WH shows prior depreciation of $858 and current depreciation of $1,175, which means that the prior depreciation on the 2024 3885A-CA for this property should show as $1,175.  The Flooring shows a total of $2,438 prior dep. and $900 current depreciation, so 2024 prior depreciation should show $3,338, it currently shows 0.  For AC the prior dep. shows $2,548 and the current dep shows $941, so the 2024 3885A prior dep. should be $3,489.

My concern is that the calculation for the current depreciation (for CA only) for these assets is overstated as the system thinks that no prior depreciation has been taken.

There appears to be similar errors for the new AC asset for the Clint Ct. asset and the flooring on the 102 CP Loop property.

Thanks,

Chris