Should I add a business mile for my car and a rental day for my property to schedule e worksheets to fix my returns? I don't have a rental any more.

[JulieS]

No, you don't need to enter information that is not true to get through the review process. 

TurboTax rolls your tax forms forward each year to make your tax prep easier for you, but if you don't need these forms, it is better to delete them than to just make it work. 

Before you delete anything, please make sure you don't need the forms in question at all for your 2022 return. 

If you didn't rent out your property at all, and have no other rental properties, you can delete Schedule E and everything that goes with it.

If you didn't use your vehicle for business at all in 2022, you can delete the Car and Truck worksheet. 

This is how to delete these forms:

1. Open your return, scroll down to Tax Tools on the bottom of the left side menu. 
2. Select Tools.
3. Click on Delete a form (third on the list at the bottom of the screen).
4. Find Schedule E, page 1 on the list of forms.
5. Click Delete to the right.
6. Confirm your Delete.
7. Find Car and Truck worksheet on the list of forms.
8. Click Delete to the right.
9. Confirm your Delete.
10. Click Continue in the lower right. 
11. Click Continue with my return.
     

[lbunes007]

Hello JulieS,

And thank you so very much for the kind reply you sent to my TT question re. the TT review as it relates to my schedule E worksheet. The question is actually slightly more complicated than my post suggested, but I kept it simple due to the very limited space TT permits for such questions. Having been a TT client for many years, I do realize that most forms from the previous year's return are rolled forward. When I began this year's return last week, I eliminated sched. E (from the menu of rolled forward forms) knowing that I didn't have rental activity in 2022. I had no way of knowing that associated worksheets would not also be deleted with this action, however. Perhaps this is a glitch in the TT software. Perhaps not. The reason I say this is that I have a large loss carry-forward from 2021 (unallowed) that is listed in the lengthy sched. E worksheets, and perhaps that is why the worksheet was not eliminated. However, the unallowed loss is also described ad infinitum in Form 8582. Shouldn't that be sufficient to carry this loss forward until such time as it can be used?

So, the issue comes down to this: how do I get through the review process for 2022 so that I can expeditiously e-file, and not lose a valuable passive loss? If you can so kindly assist me over this little hurdle, I would be very appreciative.

Thank you so kindly.

Leonard Bunes

Replied 2.28.23

Update: The above post was sent via JulieS's return email at TT but it did not go through.  Gmail could not find the TT account and kept returning the email to my inbox.  On Friday, Mar 3, I resent the message above in a new email.  It suffered the same fate.  I followed JulieS's advice to delete all schedule E forms and worksheets.  Sure enough, that cleared up the review glitch and allowed my return to clear and efile--which I completed on Feb. 28th.  But sure enough, my 2022 return now contains no Form 8582 showing my 2021 loss carry-forward (I wasn't able to use it once again in 2022.)  How do retain my very valuable future tax loss?

[DianeW777]

You should amend your return to include the 8582 that shows your loss carryforward. Follow the instructions to amend your return.  You can only deduct suspended passive-activity losses in two situations:

1. Against passive-activity income 
2. When you dispose of the passive activity in a fully taxable transaction to an unrelated party

When you converted rental property to personal use (or simply took it out of service) there are suspended passive-activity losses. So, you can continue to deduct the suspended passive-activity losses from other passive income. If you have no other passive income, the suspended losses remain suspended. Carry them forward until you sell the home in a fully taxable transaction. 

• How to amend (change or correct) a return already filed?
• What is the deadline for filing an amended return?

@lbunes007