TurboTax is not permitting me to deduct short-term rental losses against W2 income

[Teresa88]

Where do I check non passive on Schedule E? I cannot find it.

[DawnC]

Look on Line 22 of Schedule E to see your deductible rental loss.  @Teresa88 

[EricUT03]

What’s even more disappointing is the incompetence of the CPA’s TurboTax connects us with. I went through a long list of CPA’s with TurboTax who have no idea how this works. The only way I’m aware of to do this is in Forms mode, but please let us know if you find a way to do this via TurboTax online.

[johnbaumgartner7]

I think schedule E worksheet G box.....must go to forms... fun huh?

[PaulaM]

Generally, the passive activity loss will offset other passive income. The exception with active participation is up to $25,000 for non-passive income, however this phases out with modified adjusted gross incomes between $100,000-$150,000 for married filing joint filers. After $150,000 there is no exception and the losses carry forward to future years with passive income.

IRS Pub 527

[EricUT03]

Incorrect

[johnbaumgartner7]

Basically i want out of tax discussions.  There is certain rental income that  is not passive.  There are many people who offer tax advice that is not correct, regardless of whether they think they are qualified or not, and the web and real estate literature abounds in contradictory information.   H&R  Block has great spreadsheet that sorts things.   While on my screed, I note IRS publications are of just modest help as end up saying fill in usual forms (and list many) without telling the proper form.  

[eab6287]

Has anyone successfully completed this using the Desktop software?

Trying to do the same as everyone here and my outstanding question before purchasing the desktop version is whether the software is smart enough to recognize that Schedule E worksheet passive exception box and then make the corresponding changes (e.g. applying the full loss to whatever other forms are necessary to reduce income), or whether you have to check that worksheet box and then subsequently also manually change a value or values yourselves elsewhere...hoping that the latter is not necessary.