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.

[lifenet]

Just to be sure - is there any way to work with losses in box 2 of K1 and still be able to offset wages? My K1 has been issued and modifying/refiling will be a hassle.

Much appreciated.

[SG8261]

I am working on a return for a client who owns a ST rental via an LLC. I did do two K-1s to separate the losses in box 1 and box 2. When doing the personal return, the amounts for box 1 and 2 are being combined on schedule 1, line 5 which flow to 1040, line 8. This does not make sense and seems like double counting to me.

Am I missing something or looking at this incorrectly?

Thanks.

[mbluxurycondo]

please explain how to make a property that was reported on schedule E to be on schedule C this year (just assume I can do this for my short term rental avg less than 7 nights).

how to do this on the online version.

[Mike9241]

If you rent your STR for seven days or less, you may meet the STR tax loophole, making your income non-passive as long as you materially participate. This will be reported on Schedule E. If your short term rental is rented for 30 days or less plus you provide substantial services, you will have to file as a business, reporting on Schedule C.

there is no way to move schedule E to schedule C. if proper reporting is on schedule C and no longer or never on schedule E you have to delete the schedule E and re-enter the data on schedule C..