All Investors & landlords posts

Re: Rental Property Passive losses carried over not being applied to net profit

Pkubista — Tue, 14 Apr 2026 05:50:09 GMT

Example with random numbers

I have a 10k carryover loss that shows up in turbotax as -10,000$ carryover loss on profile.

After filling out rental income and depreciation and deductions I get a "net profit" of 4,500$

My net profit shows 4,500$ when it should be 0$ "net profit" and reduce my carryover value for 2026 to 5,500.

Turbo tax sees the carryover losses from 2024 but does not apply them to 2025 passive "net profit".

I see other posts that income above 100 000 makes this carryover not applicable, but this is not true when applying to the rental property. I understand that with income over 100,000 I can't apply the full 10,000 carryover to my income, but I should be able to apply all of it to net profit on the rental property.

If this is not resolved soon I will likely no longer be a turbotax customer.

Re: How do I enter the depreciation for my rental house

SharonD007 — Tue, 14 Apr 2026 04:21:25 GMT

The depreciation from your rental property should automatically be calculated when you enter your rental property as an asset.

Go to the Wages & Income Section
Select Rental Properties & Royalties (Sch E)
Follow screen prompts to add your rental property
TurboTax will prompt you to add your income
TurboTax will prompt you to add your expenses and assets
Select New Rental Property to add the value to be depreciated (have your HUD forms available)
You will be able to add the specific closing costs that you incurred that add to the basis of your rental property.

Refer to the TurboTax article Where do I enter income and expenses from a rental property? for additional information and Tax Deductions for Rental Property Depreciation.

Re: capital gains is wrong on turbotax

DawnC — Tue, 14 Apr 2026 04:15:20 GMT

Why do you believe TurboTax is wrong?

capital gains is wrong on turbotax

chittibabu — Tue, 14 Apr 2026 04:11:53 GMT

Re: 2025 Turbo Tax Online - How to get qbi loss carryover to populate?

MelindaS1 — Tue, 14 Apr 2026 04:06:41 GMT

Click here to jump to the QBI/NOL carryover section. You will find the QBI carryforward entry menu in the business income section of TurboTax (Federal > Wages and Income), under Less Common Business Situations, alongside the Net Operating Loss carryover:

Note: the QBI carryforward entry may have 2 components, if applicable to your investment activities / passthrough ownership. The online program will require you to make an entry for both, if needed. See the QBI Carryforward 'Learn more...' links for explanation:

How do I update cost basis of rental on state return when it doesn't match federal return?

dr.teresa — Tue, 14 Apr 2026 03:59:37 GMT

The cost basis of my rental was incorrect on my federal return. But updating it does not change the cost basis on my state return. Now the land cost is higher than the incorrect cost basis, but I can't change the cost basis through the state return interview.

How do I enter the depreciation for my rental house

ryleejokiddoo — Tue, 14 Apr 2026 03:33:33 GMT

MACRS

2025 Turbo Tax Online - How to get qbi loss carryover to populate?

u28pc36 — Tue, 14 Apr 2026 03:22:47 GMT

I cannot find how to populate form 8995 line 3 --> Qualified business net (loss) carryforward from the prior year .

Should I enter here the deduction from mortgage interest took out to purchase the second home which is rented ? I took standard deduction only for the home I'm living in.

catalinaioan21 — Tue, 14 Apr 2026 03:22:35 GMT

Should I enter here the deduction from mortgage interest took out to purchase the second home which is rented ?

Re: Rental Property Passive losses carried over not being applied to net profit

Pkubista — Tue, 14 Apr 2026 03:12:51 GMT

To be clear this is for rental property. There appears to be a bug in turbotax.

Rental Property Passive losses carried over not being applied to net profit

Pkubista — Tue, 14 Apr 2026 03:11:21 GMT

I see passive losses carried over from last year. When I finish rental section those losses fo not get applied to net profit.

It shows the losses in my profile but my my profit is unaffected by those losses. The losses are more than the profit.

Re: How do I report rent received from my renter on online Turbo Tax?

MelindaS1 — Tue, 14 Apr 2026 02:31:25 GMT

Follow these FAQ instructions to enter your rental income for the year in TurboTax Online:

How do I enter rental income and expenses in TurboTax?

To enter your rental:

Navigate to the rentals section:

TurboTax Online/Mobile: Go to the rentals (< click here) screen under Income in the Federal section

TurboTax Desktop: Search for ~~rentals~~ ~~and select the Jump to link or,~~

~~Go to Federal Taxes.~~

~~Go to Wages & Income.~~

~~If asked,~~ ~~How do you want to enter your income?~~, select I'll choose what I work on.

~~Under~~ ~~Rental Properties and Royalties, select Start or Update next to~~ ~~Rental Properties and Royalties (Sch E)~~.

Answer Yes to the question Did you have any income from rentals or royalties?

On the next screen, Let's see if you're a real estate professional, select any options that apply to you.

On the screen What are you here to report?, select Rental property and Continue.

If you have more than one rental property to report, no problem—just start with one, and we’ll come back to the other one(s) later.

On the following screens, enter all the info we need about your rental property, including a description of the property, your rental income, any expenses and assets, and other less common situations about your rental.

How do I report rent received from my renter on online Turbo Tax?

ja5 — Tue, 14 Apr 2026 02:25:15 GMT

Re: Is there a glitch while entering state capital gains and loss exclusions? Does't seem to work...

ingram-kimberleyk — Tue, 14 Apr 2026 02:11:27 GMT

In past years you have had to manually update each item with date and if excluded. This version you only need to edit if it is excluded and I also had to add dates to anything that was ‘various ‘.
It initially appeared to loop and not let me past it but it eventually did.. it’s been awhile but I believe it brings it up again as a double check and if you just hit next it will continue.

Re: catching up on unclaimed home office depreciation

AmeliesUncle — Tue, 14 Apr 2026 01:32:58 GMT

@AmyC wrote:
Unfortunately, it was skipped more than 2 years which the IRS sees as adopting a new accounting method.

That is incorrect.

While the two years of an impermissible method can ESTABLISH an original Accounting Method, it does NOT CHANGE an existing Accounting Method.

That can only be corrected by amending.

Re: In depreciating a roof for a rental. TT requests to enter the value of land included in the t...

gerigal — Tue, 14 Apr 2026 01:31:37 GMT

Thank you for the answer to my question. Very helpful.

Re: How to record airbnb arbitrage losses from STR rented less than 7 days on average when I RENT...

taxmodern — Tue, 14 Apr 2026 01:17:28 GMT

You also need to check the box "G – Other passive exceptions".

TurboTax not recognizing STR non-passive treatment — How do i fix it?

thesenator — Tue, 14 Apr 2026 01:14:38 GMT

I have a short-term Airbnb rental (average stay under 7 days) and I materially participate. Under Treasury Reg 1.469-1T(e)(3)(ii)(A) and IRC Section 469, i think this should be treated as a non-passive activity, meaning my rental losses should offset my W-2 income.

TurboTax (both Online and Desktop) keeps treating it as a passive rental and running it through Form 8582, which limits my losses to $0 because my income exceeds $150k. I did have passive losses the prior year from a long term rental.

I've checked Box D (Material Participation) on the Schedule E worksheet in Desktop. Form 8582 is still there and still showing $0 allowed losses.

Has anyone successfully gotten TurboTax to properly treat their STR as non-passive? I prefer the online version because when i sync'd my online version to the desktop version, my rental's net come in oddly 10,000 dollars higher on the desktop version.

Re: How to record airbnb arbitrage losses from STR rented less than 7 days on average when I RENT...

thesenator — Tue, 14 Apr 2026 01:00:22 GMT

thank you for the detail - how do you do this in the desktop version? i just paid $115 for the desktop version, and figured out how to check off "materially participate" field but my return didn't change at all. I have substantial airbnb rental losses, meet the participation and < 7 day avg stay rules, and have plenty of w2 income but i can't seem to get the return to adjust. AI suggests i need to find the line that flags the < 7 day avg stay rule but i can't find it anywhere

Thank you,

Dave

Re: Question regarding rental property taken out of service 12/31/24, but sold 5/15/25. Turbotax ...

user17756490410 — Tue, 14 Apr 2026 00:58:02 GMT

Also, I can't seem to follow along with your instructions. In the property info, there is a prompt to select special handling, but when I click yes, (one of the options is "did I convert to personal use", it just tells me the depreciation amount is either $516 or $4645 depending on if I put the fake date of sale (1/1/25) or the real date of sale (5/15/25).

Also, If I select I converted it to personal use, things get all jacked up. The Special Handling Required page just has a bunch of options listed, but you can't select them individually. You can only click, YES special handling required at which point it just tell me the depreciation deduction. No questions about converting to a personal property.

On the Property Profile section, I can say I turned it to 100% personal use but if I leave the date of disposal blank, it gives me depreciation for the entire year.

If I put the disposition date as 1/1/25, then I still get $516 of depreciation.

BUT, there is a pop up that states I need to have 15 days of rented at a fair market price or I can't claim expenses. So again, it's asking me to lie to claim expenses I'm entitled to. I just put 1 day of fair rental. The software is buggy, the popup was an orange box, and I can't get it to reappear.

Here is where I'm confused.

I guess what I don't understand is what do you mean it will not be sold under the rental section? It won't let me NOT sell it there. I don't see how to answer the questions honestly where it isn't disposed of in the rental section. There is nowhere to claim you converted it to personal use, that's just one of the questions on on the special handling page.

On the profile, I could say I didn't sell it but that doesn't seem right. If I click I converted this rental property to personal use in 2025, nothing really happens. It just shows me depreciation still.

So frustrating.