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posted Apr 9, 2022 11:12:23 AM

Rental and Royalty Income Calculation Error

After entering correct and cross-checked expense data for a rental property into TurboTax the expense line is unalterable, not able to be updated and under calculates the expenses accrued for 2021.  I have the most current updated version of TT.  Help!  I don't want to pay unnecessary taxes.   

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1 Replies
Expert Alumni
Apr 9, 2022 2:04:13 PM

There are certain situations that limit the expenses you are allowed to deduct. You must have one of those situations. Passive activity, your income, days of use, etc. Please check to see if you have form 8582 in your return. You can check sch E instructions* to see which reason yours is limited.

 

* 2021 Instructions for Schedule E (2021) - Internal Revenue Service states:

If you have a rental real estate loss from a passive activity (defined earlier), the amount of loss you can deduct may be limited by the passive activity loss rules. You may need to complete Form 8582 to figure the amount of loss, if any, to enter on line 22. See the Instructions for Form 8582 to determine if your loss is limited.