Turbotax asking for Schedule E Passive Operating Loss on rental property

[Frank_MA]

I believe Turbotax messed up on rental property loss carryover back to 2018 or 2019. They pass down some number they should not.

[ddev1]

Same issue here.  Handling rental properties is the only reason I use TurboTax.  Given the lack of a solution or guidance thus far I'm really starting to question whether I can even trust the data in my returns over the past decade.

[Frank_MA]

Go through my tax filing for 4yrs, from 2020 to 2023. Look at Schedule E and its worksheet. I believe there is a bug in 2023 calculation of carry over or disallowed loss. For some reason, the disallowed loss tallied all previous years disallowed loss and ignored amount treated as carry over in following years after disallowed. The disallowed should be counted as carry over. The disallowed amount in 2023 is basically calculated wrong and not following tax laws. That trickles down to 2024 worksheet. You have to manually check if they calculate right before you set all error place to zero.

[Brian1255]

@PatriciaV "This may be easier if you can access your 2023 return and print the Schedule E worksheet." how can I access past Schedule E worksheet? I use the online edition.

Thank you.

[Brian1255]

Can you provide instruction on how to access prior year Schedule E and its worksheet?

Thank you.

[AJ Deaton]

Is there any update on when the software will be updated with a fix to this issue?

[mud5150]

Filing with Florida as my state. 

2024 token is 1302818

There is no way to get a token for 2023. Not that it's needed. It's clear the bug is entering the value in the wrong field. It's such a pathetically simple bug to fix that it's clear no one has looked at this at all. This was reported in Feb and now we are 6 days away from the filing deadline, with may people reporting the issue. What is the problem?

[preetpuri23]

Any update on how to fix this? Having same issue and no clue how to move ahead?

[Frank_MA]

I use turbotax desktop version. 

Instead of using step by step filing, go to top-right corner, click on the forms, look for the rental property Schedule E work sheet, check line 21 and 22 numbers, that is your loss and allowed loss.  In the carryovers to 2024 Smartwork sheet, that is QBI value calculated from previous years. Check all previous years QBI and carry over, to see if there is any left over to 2024. You can see QBI tracking sheet of previous years following this table.  I saw Turbotax do messed up on 2018/2019 but correct later on. Don't know why the software messed up again this year. In my case, previous two year QBI number is zero, so I can set my QBI number, error check identified cell, to zero.

[dropspyder]

I have the same problem.   My token number is: 1303377

[preetpuri23]

Ok, here's what I did: I collected all the loss carryovers from the last four years for my rental property. I looked at the Schedule E worksheet and compared everything. For me, the 2021 and 2024 (current) loss carryovers were correct. However, for 2022, the loss carryover value was actually from 2023, and 2023 was showing as empty.

I ended up moving the 2022 loss carryover into 2023, and it worked, which makes sense. So now, even though all the values are correct across the last four years, the 2022 and 2023 values are technically swapped. I’m not sure if that actually makes a difference, but I’m no longer getting any review errors.

The only other option would be to buy the Desktop version and manually fix the forms, as many others have suggested.

Total BS. I really didn’t expect TurboTax to have issues like this. It honestly makes me nervous where else could it be making mistakes? And why hasn’t this been fixed yet, especially since the issue was reported back in February? 

[ss1234567]

This response by @preetpuri23 helped me.

I had to download my 2022 return, and find the loss from that year, and put that in, which will end up in showing for the year 2023. So, 2022 and 2023 will have swapped values, but at least we have both values reported.

[gisela-v-rojas]

Hello, how did you make your changes without the desktop version? I have an old Mac and it’s not compatible with the desktop version so I’m stuck. Thanks 

[SN63]

The so called "Tax Experts" are useless. Turbotax is a buggy product. I had two of them call me to help, both of them struggled to understand this issue where it said: passive operating loss sum of losses in individual years should not be greater than the total loss.

They just mucked around the screen and disconnected. Useless product.

[ss1234567]

@gisela-v-rojas see my comment above. The only way I could do it with the online version was to switch the numbers for 2022 and 2023. Essentially, the online version lets you input for 2023 only, but has also autofilled your 2022 box with 2023's number (unfortunately).

So, I took the 2022's number (retrieved from 2022 tax filings) and plugged it into the 2023 box.