Solved: Re: Last year my rental property had a negative net income. This year my expenses appear to be ca...

shpurdum · Jun 6, 2019 2:41:39 AM

On my 2015 return, my rental property income was about $12,000 and my expenses about $22,000. Thus Turbotax reported my net income at about -10,000.On my 2016 return, my rental property income was about $11,000 and my expenses about $23,000. Thus Turbotax reported my net income at zero.Why doesn't it report my net loss in 2016?

Last year my rental property had a negative net income. This year my expenses appear to be capped at the amount of my rents received. Why?

OK - so a couple of items and its easy to replicate :

1) AGI >150K and no Im not a real estate professional and either is my wife.

2) the capital gains/loss is a different line on the 1040 (line 7) and the real estate loss is line 8 via line 5 on schedule 1 via schedule e -- so no im not confusing the Captial gain loss.

3) the issue is when you put in "other expenses" you get to that tab - i for example put 200 more of "other expenses" than my rental income. That resulted in -200 ultimately on line 8 of the 1040. If i made the "other expense" 1000 more than the rental income then -1000 shows on line 8 of the 1040. It doesnt matter if I make the it a QBI or not.

4) Its only the "other expenses" and not the common expenses (they get filtered out of the schedule e as my other expenses dont)

I believe this is a bug with TurboTax and it goes back several years. Please look at the "other expense" calculation in turbotax as that entry should not allow me to deduct an amount greater than my rental income when my AGI is >150K and im not a real estate professional (either is my wife).