Turbotax asking for Schedule E Passive Operating Loss on rental property

[We688]

I’m having exactly same issue here in NY. And if I go to the “Forms” Schedule E worksheet it appears to me that previous year showed 2022 (but NOT 2023), then 2021, 2020… last year 2023 is missing. 

What is the solution ? Waiting for a fix. 

Thanks, Mario

[PAW83]

Just wanted to remind the group that I posted the solution above, which is the only solution right now. 

1) Buy turbotax desktop (I paid about $115 for Federal+State).

2) Import your online work to the desktop version (you don't lose progress)

3) Run the federal check/review (assuming you were basically done with federal inputs)

4) Fix the entries manually (can only do this in the desktop version)

Done!

[PatriciaV]

The work-around presented in this post will correct the passive loss carryover entry from last year. You will need to be using TurboTax for Desktop. Once completed, your return should pass final review and be ready to file.

@PAW83 

@We688 

@ssh8566 

@anitabath11 

[edited 3/9/2025 | 1:12pm PDT]

[dugaldm]

Argh - same problem. I wasted an hour trying to find my error, found this thread and realized it's a TurboTax error. It's my job to download a desktop version for $$$ and figure out how to rectify what goes in what box? TurboTax, please fix this soon! (Patricia thank you very much for your work on this...)

[rsturtevant]

This is not working!

I have tried to enter the Line G suspended loss number in the operating loss question and I now get the error "Passive Operating Loss ... sum of losses in individual years should not be greater than the total loss."  

After importing my tax return to the desktop version and I edited all the years in "Disallowed Passive losses by Year and Type" this does not work either I think I'm entering the wrong numbers.  I'm using the numbers from Form 8582 Part VII collum (c) unallowed losses, but that seems to be a cumulative loss number and entering it in the carryovers to 2024 Worksheet is not right and it give me an error.  Where can I find the correct loss number from a pervious years tax return to enter?  I can't find any numbers on pervious tax returns that match what is in the 2024 Worksheet currently.  Would it be the Form 8582 Part VIII allowed loss?

Please advise.  

[mrug]

Thank you, your answer was perfect.   For some reason Turbo has more glitches than usual this year. Still love it though.

[edward-h-jones]

I did contact support as you recommended and they said they could not provide a free copy of the desktop software due to this bug, and recommended I buy it.  

Now that's impressive customer service (not).

[mdeuel]

I also contacted support and they said they had no idea what I was talking about regarding a free download. She also had no idea when this bug would be fixed and seemed like I was the only one with this issue. She told me to download/pay for the Desktop version and correct the worksheet as suggested on this thread, and to request a refund of the Online version since I already paid. That's exactly what I did, and today I get a message saying they can't refund my Online version because Online is not covered under the "Satisfaction Guarantee". So in total I had to pay $93.81 for the Online version and $122.76 for the Desktop version just to file my taxes on my own and fix TurboTax's worksheet error. This is how they treat their customers of 10+ years. Awesome!

Update: they did finally refund my Desktop purchase after requesting twice. I provided a link to this thread in my refund request, so not sure if that helped or what. Still annoying it had to be purchased in the first place since it was TurboTax’s error. 

[jazzper21]

I had a similar experience today calling into tech support. My agent was of no help…she kept sending me articles like this one…and I was like “there is no resolution on these…can’t you see there is a problem from the amount of people posting about this”??? I asked to be escalated to a manager but she refused. I’ve never had that happen anywhere before. She left it at I need to call the IRS (what the heck will they do???)  or pay for Live Advice. This is a bug…why do we need to pay more for a bug!?!

[fullysane]

I followed your instruction steps to update the field on the form of my TurboTax desktop version. but it did not take the update and still show me the same error. Any suggestion on how to resolve it?

[csherer1]

FYI-I was using TT online and had the same problem. I downloaded and switched to the desktop version and was able to use the fix that was suggested. However there is NO way to import my 2024 return that I had already completed entered online to the desktop version so had to reenter EVERYTHING.  I spoke with 3 different people at TT support, and they all confirmed there is no way to transfer the online 2024 return to the desktop version.  Very disappointed about the error in schedule E with passive losses and TT not fixing it, and even more disappointed that I had to reenter everything.

[DoninGA]

@csherer1 What you were told that you could not transfer the 2024 online tax return to the 2024 desktop program was incorrect.

Sign onto your 2024 online account and access the 2024 tax return and one of the sections of the return to make the links on the left of the side of the online program available - https://myturbotax.intuit.com/

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Save your 2024 return to your computer

On your 2024 desktop program click on the File menu at the top left of the desktop program screen.  Then click on Open Tax Return.  Browse to the location where you download the 2024 online tax data file to open the file.

[slobo80]

I contacted support. They transferred me 2 times and the third time the call dropped. They said they never heard of the issue before. I shared my screen with them and also show them your message suggesting to install the desktop version and contact the support. They were not interested in hearing about it.

As a long time loyal customer, I'm disappointed how this important case is being handled. 

[csherer1]

Yes, that would work to import your 2024 return from online to the desktop version but only if your 2024 return is completed. However, because of the error with the passive operating loss, you can't complete the 2024 return online....

[TLCA]

How can I find this worksheet from last year's returns so that I can get these numbers? I bought the desktop version and would like to get this done. I have downloaded last year's return, but I do not see a worksheet that looks like this--showing all the disallowed passive losses for each year. This error with transferring the numbers from last year has been very frustrating.