QBI Passive Op Loss Must be entered

[luke622]

Sorry I can't help you. I've sold all my LLCs due to tax questions (even one that was paying me 13% dividends). I don't understand why TurboTax has not developed their software to import K-1s, and then to make all calculations automatically like they do for the rest of one's investments. C'mon, TT, do your job!

[Diana46]

Problem: Federal Review is asking for Schedule E QBI Passive Operating Loss and Passive Operating Loss but does not indicate which fields are missing.

Solution: Probably zero (0). 

I worked with two specialists and an expert this evening to interpret what appears to be a coding bug. In the rental property sales carryover section, Passive loss and QBI deduction ask for a by-year value to be entered. If the total loss spans multiple years, and some of the loss is from prior to 2018, one should be able to enter 0 (zero) in the 2018 & 2019 fields, however, the page will not accept the value zero.

During the Federal Review, I was redirected to check the values for the Schedule E form to fill out the Passive Operating Loss and QBI Operating Loss, yet, there are no fields with these titles and it was unclear what to complete (no fields were being highlighted by the system to indicate what is missing). When I entered a value, the next message indicated that the number could not be greater than zero. I entered a negative value (I suspected this was incorrect) and clicked Continue. I was greeted with a Success message that didn't feel accurate. So I navigated back to the original Carryover section and confirmed my suspicions; the original entry is not allowing zero, yet the form is requiring zero in the 2018 and 2019 fields. I corrected the values I had changed in the Federal Review, left 2018 and 2019 blank, returned to the Federal Review section and added zeros when prompted for the missing values.

I believe this is a bug and will cause folks to enter an incorrect value. Hopefully, mine is correct.

[ppumgrad]

It is a bug.  There were two other discussions where a TurboTax "expert" said a fix to the bug was going to be released April 8 (links below).  But after the release, I discovered and reported it was only partially fixed, which means it wasn't "fixed".  Of course, after that, the "expert" was no where to be found.  So I tried to manually enter what I thought were the correct QBI entries while entering my K-1's.  But then I ran into the same problem you did during the final review portion and could not figure out what Schedule E fields they were talking about.  I spent a couple hours filling in a field here and there, then seeing how the resulting Schedule E would look, to figure out which fields corresponded to which in the form.  Every time I'd get the error, and TurboTax would say my options were either fix the fields or submit a paper return.  So I gave up and went back to leaving the incorrect data that TurboTax initially populated.  The resulting QBI loss carryover in the Schedule E looked okay and my return was accepted, but I know there's wrong data in there, but I got tired of messing with it and nobody from TurboTax chimed in.

https://ttlc.intuit.com/community/taxes/discussion/qbi-carryforward/00/2092446

https://ttlc.intuit.com/community/taxes/discussion/potential-bug-qbi-carryover-loss-not-populating-p...

[drspock11]

Now it's 2023 and this bug still is not fixed. And multiple "experts" from TurboTax don't even seem to know what QBI even is. Intuit is beyond incompetent. 

[rgrjimk]

To make this error even more stupefying, I have two rental properties.  The Schedule E worksheet for the first seems to work correctly.  The Schedule E worksheet for the second one seems to be comparing the 2020 QBI Operating loss number to the 2021 "regular tax" Operating loss number rather than comparing it to the 2020 "regular tax" Operating loss number.   (I know this because the error message I receive includes the "regular tax" operating loss value shown in BOTH coumns for TY2021)  In my situation they are or should be the same values in both columns for all years.  Why would the worksheet work correctly for one property and not the other?  Good grief!

And the stupid program probably won't let me eFile until all "errors" are resolved - which seems to be impossible.

[socasuemlcc]

I am getting the above message for an oil and gas K1. where do I find the value to enter

Thank you

[PatriciaV]

Please clarify the exact text of the message you are receiving and where you are working in TurboTax.

@socasuemlcc 

[bugmenot]

I just wanted to add that I also suffered for this bug. I had the same error on federal review. What's unbelievable is that it was asking me to fill in a value on the worksheet for years I didn't even have the rental! I guess that made it easy for me but still annoying and makes you worry you messed something up.

[Pazzy]

Yes, same here. It's now October 2024. I have been using TT or TT Online for many years and all my Schedule K-1 forms have been input into TT in previous years. 

Now it's giving me the same error for multiple K-1's:  "QBI Passive Op Loss Must be entered" but it does not tell me for what year and does not show an editable field in the form. It's extremely frustrating.