Passive Operating Loss must be entered

[ramyun1]

Turbo Tax did a smart check on my return and flagged that Schedule E Worksheet: Passive Operating Loss must be entered.  In the Carryovers to 2024 Smart Worksheet that's displayed, it prompts me to enter the Disallowed Passive Operating Loss for 2023 in the Regular Tax column.  Coincidentally, there is an amount already shown in the QBI column for 2023.  This amount matches what I see on Form 8582 of my 2023 tax return.  Oddly, this same amount is shown in the Regular Tax column for 2022 in the smart worksheet.  Should I be entering the amount I see in the QBI column for 2023 into the Regular Tax column as well to match?  Is the amount I see for 2022 an error on Turbo Tax's part and if so should I remove that amount?  On a side note, my 2023 tax return was the first year where I had a loss that I could not fully deduct on my tax return.

[PatriciaV]

When you run Smart Check, TurboTax will present a section of Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Disallowed Passive Losses by Year and Type. You'll see the carryovers are out of sequence. In some cases, 2022 is on the 2021 line. Or the 2023 number is on the 2022 line. 

To fix this, enter the correct number starting with the most recent year, Then move up the schedule until all years are correct. This may be easier if you can access your 2023 return and print the Schedule E worksheet.

[ramyun1]

Thank you very much PatriciaV for your answer!

[TurboJake]

I'm running into the same problem/bug with 1065 K-1s. Here are the screenshots for 2024 TurboTax Home & Business and 2023 TurboTax Home & Business for the same K-1...

2024 TurboTax Home & Business (macOS version):

2023 TurboTax Home & Business (macOS version) for the same K-1:

Shouldn't the numbers for previous years be the same?  What is the correct way to resolve this?

@PatriciaV 

[PatriciaV]

For 2024, move the number from Row P to Row S. Then copy the QBI amount on Row P to the Regular Tax column for that same row. (Notice that the 2023 table has the same numbers on Row P.)

@TurboJake 

[TurboJake]

Thank you @PatriciaV . That looks more correct, and it fixes the 2018 numbers that were changed.

This is definitely a TurboTax bug that should be fixed.