Rental Income Should Be Active

[masseyinvestments559]

I am a licensed Real Estate Agent, I manage my own rentals (long term and short term), I also complete many of my own repairs. Turbo Tax has my rental income on a Schedule E. How do I move that over? I have carryover losses from when I purchased the Triplex in 2022. I do not want to lose them, but I am absolutely actively participating in all parts of this property.

[VolvoGirl]

What do you mean "move over"  over to where?  You need to upgrade to Premium to enter rental or business income and expenses.  

[masseyinvestments559]

My rental income/losses need to be active not passive. Therefore, not being limited. I am not sure how to ensure it is counted as active.

[tagteam]

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@masseyinvestments559 wrote:

My rental income/losses need to be active not passive. Therefore, not being limited. I am not sure how to ensure it is counted as active.

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Active participation still generates passive losses unless you also materially participate in each rental activity as a real estate professional.

If you provide significant services to your renters (link below), only then would you report your rental income and expenses on Schedule C.

See https://www.irs.gov/instructions/i1040se#en_US_2023_publink24332td0e1083

[AmeliesUncle]

It correctly is on Schedule E (unless services are provided to the tenants, such as maid service or meals).

If you qualify as a Real Estate Professional (see link below), make sure you have told that to TurboTax.  Then you will also need to determine if you "Materially Participated" in each rental activity (if you did, be sure to tell that to TurboTax for EACH property).

If you do BOTH of those, the program should treat it as "non-passive" income (in tax terminology, "active" not the opposite of "passive").

https://www.irs.gov/publications/p925#en_US_2023_publink1000104591

https://www.irs.gov/publications/p925#en_US_2023_publink1000104581