TurboTax mistakenly shows one of my rental properties as NONPASSIVE

[man21]

Hi. I am filing my 2021 tax using TurboTax Home & Business 2021. TurboTax is mistakenly showing one of my rental properties as NONPASSIVE instead of PASSIVE on the California FTB 3801 worksheet, thus that property is not being shown on the Passive Activity Loss Limitations form (Form 8582) and I am losing out the allowed loss from this property.

The few other rental properties that I own are correctly showing as PASSIVE on the California FTB 3801 worksheet and are being shown on the Passive Activity Loss Limitations form (Form 8582).

Any idea how to correct that? Thanks.

[AnnetteB6]

Take a look at the number of days rented and the number of personal use days.  If the number of personal use days is greater than 14 or 10% of the days rented at fair rental value, then the activity is deemed to be non-passive.  

You will need to review these entries in the Federal rentals section of your return.

[man21]

Hi. This property was rented 100% of the time with zero personal use days, just like my other few rental properties. For some reason this property is the only one that says NONPASSIVE, while the other ones say PASSIVE. Any idea why?

[DianeW777]

Yes.  Look at the property information to see how you answered your questions. You should say yes to 'Active Participation' and No to 'Real Estate Professional'

• Search (upper right) > rentals > Click the Jump to... Link > Edit beside your rental activity > Edit beside Rental Property Info
• Or if using TurboTax CD/Download Edit beside Property Profile

[man21]

Hi. Yes that is what I have: Yes to Active Participant and No to Real Estate Professional.

[Cynthiad66]

You seem to have entered everything accurately.  You may have a computer loop and need to clear you cookies, history, cache' an reboot.  This can clear up any computer loops.

Cookies are small files that temporarily store data on your computer. We use them to personalize your experience so you see information you already entered and not items that are irrelevant or repetitive.

On rare occasions, they may make your browser think you already did something that you still need to do. To fix that, you'll need to delete (clear) the cookies from your browser.

Each browser has a slightly different method for deleting cookies. Choose the browser you're using:

• Internet Explorer
• Mozilla Firefox
• Google Chrome
• Safari
• Safari for iOS (mobile devices)

If this does not work, you may have to delete and re-enter this property.

[AmeliesUncle]

Did you accidently mark it as a rental of "land" or as a "self rental"?

[man21]

I am using the Desktop version, not the online version, so I am pretty sure the issue is not because of the browser's cookies / history / cache.

If there is a solution I would rather not deleting and re-entering this property, as I have years of past carryovers and data on this property.

[man21]

Nope I did not.

[AmeliesUncle]

Go into the "Forms" and look at the "Schedule E Wks" for that property

Compare the top of that worksheet (with the check boxes, number of rental/personal days etc) with one of the other "Schedule E Wks" for a different property.  Is there anything different between the two?  If so, what?

[man21]

The top of "Schedule E Wks" for that property is exactly the same as "Schedule E Wks" for the other properties:

. 365 days rented

. 0 days of personal use

. C Active Participation

. H Complete taxable disposition

. No for I thru M

[AmeliesUncle]

---

@man21 wrote:

. H Complete taxable disposition

---

So you sold this property?  That releases the passive losses.

[man21]

Yes this is one of the 3 properties I sold in 2021, but this is the only one that says NONPASSIVE on the California FTB 3801 worksheet and is not being shown on the Passive Activity Loss Limitations form (Form 8582).  The other 2 that I sold in 2021 say PASSIVE on the California FTB 3801 worksheet and is being shown on the Passive Activity Loss Limitations form (Form 8582).