Turbotax asking for Schedule E Passive Operating Loss on rental property

[Iuseskidoosfortract]

I am having the same issue.  Turbotax needs to fix this.  I bought the program so I don't have to keep track of all this.  Why isn't the program pulling the carryforward numbers from last years return file?  That's what computers are for, if I have to do this, there is no reason for the program.  TurboTax, please fix it.

[Iuseskidoosfortract]

I am using desktop.  I just pulled my schedule E worksheet for 2023 and what TT 2024 did on my 2024 carryover worksheet is it misaligned the carryover data from 2023 to the 2024 return.  On the 2024 Schedule E worksheet the 2022 Regular tax cell has the 2023 regular tax carryover number in error.  Also the 2023 Regular tax cell is blank.  The number that should be here got put on the 2022 regular tax cell.  This is clearly a software issue.  I was able to correct it, by correcting the 2022 regular tax cell back to the correct 2022 number (I got this number from pulling up last years Schedule E worksheet).  Then I typed in the 2023 regular tax carryover into the 2023 regular tax cell which was showing zero.  I have two Schedule E worksheets for two different properties and the same issue on both forms.  I fixed both of the forms doing the process noted above.  At least its consistent.  It really needs to be fixed.  Thanks everyone else for the suggestions.  After doing this, I am clear on the error check and ready to file.

[canyak]

This is a serious error in the TurboTax software and they don't seem to care in the least. The entire point of TurboTax Premium is it calculates this and tracks this year to year. It is now incorrectly calculating several years of carryover losses and they've known for months and they just tell you to buy the desktop version and manually fix it yourself?!! 

[Frank_MA]

I believe there are two set calculations running parallel in the calculation. The one turn money for IRS is right.

The worksheet calculation routine is probably for training exercises.

[Frank_MA]

I am using desktop.  I just pulled my schedule E worksheet for 2023 and what TT 2024 did on my 2024 carryover worksheet is it misaligned the carryover data from 2023 to the 2024 return.  On the 2024 Schedule E worksheet the 2022 Regular tax cell has the 2023 regular tax carryover number in error.  Also the 2023 Regular tax cell is blank.  The number that should be here got put on the 2022 regular tax cell.  This is clearly a software issue.  I was able to correct it, by correcting the 2022 regular tax cell back to the correct 2022 number (I got this number from pulling up last years Schedule E worksheet).  Then I typed in the 2023 regular tax carryover into the 2023 regular tax cell which was showing zero.  I have two Schedule E worksheets for two different properties and the same issue on both forms.  I fixed both of the forms doing the process noted above.  At least its consistent.  It really needs to be fixed.  Thanks everyone else for the suggestions.  After doing this, I am clear on the error check and ready to file.

[Frank_MA]

Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. For some reason, the disallowed loss tallied all previous years disallowed loss and ignored amount treated as carry over in following years after disallowed. The disallowed should be counted as carry over. The disallowed amount in 2023 is basically calculated wrong and not following tax laws. That trickles down to 2024 worksheet. You have to manually check if they calculate right before you set all error place to zero.

I use turbotax desktop version. 

Instead of using step by step filing, go to top-right corner, click on the forms, look for the rental property Schedule E work sheet, check line 21 and 22 numbers, that is your loss and allowed loss.  In the carryovers to 2024 Smartwork sheet, that is QBI value calculated from previous years. Check all previous years QBI and carry over, to see if there is any left over to 2024. You can see QBI tracking sheet of previous years following this table.  I saw Turbotax do messed up on 2018/2019 but correct later on. Don't know why the software messed up again this year. In my case, previous two year QBI number is zero, so I can set my QBI number, error check identified cell, to zero.

[Frank_MA]

Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. You have to manually fix it.

I use turbotax desktop version. 

Instead of using step by step filing, go to top-right corner, click on the forms, look for the rental property Schedule E work sheet, check line 21 and 22 numbers, that is your loss and allowed loss.  In the carryovers to 2024 Smartwork sheet, that is QBI value calculated from previous years. Check all previous years QBI and carry over, to see if there is any left over to 2024. You can see QBI tracking sheet of previous years following this table.  I saw Turbotax do messed up on 2018/2019 but correct later on. Don't know why the software messed up again this year. In my case, previous two year QBI number is zero, so I can set my QBI number, error check identified cell, to zero.

[Frank_MA]

Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. You have to manually fix it.

I use turbotax desktop version. 

Instead of using step by step filing, go to top-right corner, click on the forms, look for the rental property Schedule E work sheet, check line 21 and 22 numbers, that is your loss and allowed loss.  In the carryovers to 2024 Smartwork sheet, that is QBI value calculated from previous years. Check all previous years QBI and carry over, to see if there is any left over to 2024. You can see QBI tracking sheet of previous years following this table.  I saw Turbotax do messed up on 2018/2019 but correct later on. Don't know why the software messed up again this year. In my case, previous two year QBI number is zero, so I can set my QBI number, error check identified cell, to zero.

[luckydogx]

"... 2024 Schedule E worksheet the 2022 Regular tax cell has the 2023 regular tax carryover number in error.  Also the 2023 Regular tax cell is blank.  The number that should be here got put on the 2022 regular tax cell."

Same for me.  To fix the history and get by the error be file, I moved the value from 2022 to 2023 and put the correct value for 2022 from last years Schedule E worksheet.   

Thank you for finding the TT error; I did not expect to be working around a TT bug as I was filing on the deadline.   TT please add a better test so we don't have to  

[canyak]

Yes, I confirmed in mine that's exactly what it is doing. The 2022 Operating loss isn't being entered at all. It fills 2023's loss in the 2022 line and leaves 2023 blank. Unfortunately I'm using the web version and there seems to be no way to override it. Why doesn't TurboTax fix this?