topic QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes in Get your taxes done using TurboTax

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

Pittfan — Sun, 26 Jan 2025 23:04:40 GMT

I am receiving this error in the Schedule E worksheet for 2024:

The software wants me to remove the $5,004 entry, however this entry is accurate if you look at the 2023 Schedule E Worksheet and Form 8582 Part VII (a). There is no regular tax or AMT suspended loss to input. I am at a loss as to why this error is occurring, thanks in advance for any assistance.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

PatriciaV — Thu, 30 Jan 2025 00:59:56 GMT

It would be helpful to have a TurboTax ".tax2024" file to test this issue further.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions:

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)

Choose Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear.
Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
Please include any States that are part of your return - the is VERY important.

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

Pittfan — Thu, 30 Jan 2025 02:46:49 GMT

@PatriciaV I am using the online version of Turbo tax and can only download my .tax files for 2023 and earlier. Are there different steps to download the diagnostic file you can use on Turbo Tax online?

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

Pittfan — Thu, 30 Jan 2025 02:52:14 GMT

@PatriciaV I actually figured it out. The token number is 1264049

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

PatriciaV — Thu, 30 Jan 2025 20:29:17 GMT

Please provide the complete token number, which has a long number, a dash, then a shorter number. The instructions for TurboTax Online are below. Please include the name of your State(s) as well.

In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
Please include any States that are part of your return - this is VERY important.

@Pittfan

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

Pittfan — Thu, 30 Jan 2025 20:44:34 GMT

@PatriciaV Thanks, I followed the instructions, and this is what it gave me, the token number is not formatted as you mentioned: 1264325. I have PA and WV as my states as well.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

Mike9241 — Thu, 30 Jan 2025 21:01:08 GMT

for your information, it is possible to have a QBI passive loss carryover but not a passive loss carryover, they are two separate things

example passive loss from rental real estate $10K, QBI passive loss also $10K

adjusted gross income $140K

the passive loss for regular tax purposes is allowed but since the QBI is a loss, it doesn't just disappear but becomes a carryforward to offset QBI income in future years..

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

Pittfan — Thu, 30 Jan 2025 21:21:08 GMT

Thanks, I feel like that is the situation I am in, but the software is not allowing me to carryforward the QBI one. Very frustrating.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

Pittfan — Thu, 06 Feb 2025 12:56:28 GMT

@PatriciaV Good morning, have you had a chance to review the test file?

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

PatriciaV — Thu, 06 Feb 2025 14:50:48 GMT

The resolution is to enter 1 or -1 for the regular carryforward. This will allow the QBI to be carried forward to next year's return.

The experience has been reported to our development team for investigation. It's unlikely this will be addressed before the filing deadline.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

rubesMN — Tue, 25 Feb 2025 03:17:44 GMT

Entering 1 or -1 in the field identified in the original post does not work. Can you please explicitly clarify where we are to 'enter 1 or -1' so we don't lose the carryforward.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

PatriciaV — Tue, 25 Feb 2025 22:12:40 GMT

The negative 1 should be entered in the Carryovers to 2024 Smart Worksheet found at the bottom of the Schedule E worksheet on Line G in the Regular Tax column. This is the form that appears in the Smart Check popup window. See screenshot below.

You can also open this form in TurboTax for Desktop using Forms Mode.

@rubesMN

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

rubesMN — Wed, 26 Feb 2025 01:33:26 GMT

After putting -1 in the Regular Tax column and re-running my Smart Check, results in a new entry being identified as missing:

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

rubesMN — Wed, 26 Feb 2025 02:49:28 GMT

Following up. I did check and 2023 had no operating losses. I zero'ed those 3 entries and things seem to be ok. However, in 2022 had a QBI passive activity operating loss and it was applied to income in 2023 taxes. So it seems there should not be a QBI carryover for my passive operating loss. Perhaps a bug in the code that carries it forward not seeing it was applied in 2023. Or, maybe I'm missing something.

Hence: blank out QBI suspended loss as Turbotax suggested?

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

DaveF1006 — Wed, 26 Feb 2025 20:23:04 GMT

Yes, remove the QBI suspended loss since it was used up in 2023.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

jimavera — Sun, 02 Mar 2025 06:30:37 GMT

I put -1 in the regular loss column and then later got this error:

"Schedule E Worksheet -- Schedule E Two Year Comparison: Sch E loss-priry yr amt must be less than or equal to zero.

Sch E loss-pry yr amt -1.

-1 is less than or equal to zero, so I don't know what to do here.

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

PatriciaV — Sun, 02 Mar 2025 15:09:55 GMT

If you had no carryover loss from last year, enter zero. If that doesn't resolve the message, try a positive one.

@jimavera

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

jimavera — Sun, 02 Mar 2025 16:55:10 GMT

I had losses (-620) carried over from 2023 in both the 'Regular Tax' and QBI columns.

During final check for 2024 TT showed the same negative value in the QBI carryover column but nothing in the Regular Tax column, and that was flagged as an error. I tried entering 1 (i.e. positive) and TT said it must be negative so I tried -1 and it accepted that but then got the later error I described previously--saying that -1 was not zero or negative. Help please!

FWIW I had very large Medical Expenses in 2024 and large Capital Losses so maybe a unusual combination of carryover is present

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

PatriciaV — Mon, 03 Mar 2025 14:54:36 GMT

This experience has been reported to our development team and should be resolved with the update scheduled for Friday March 7, 2025. Because updates are released after business hours Pacific time, we recommend waiting until the day after to run Review again.

Note that TurboTax Online is automatically updated after midnight on form release dates. TurboTax for Desktop is updated when you first open the program.

We appreciate your patience while your concerns were addressed by our programmers.

@jimavera

@rubesMN

@Pittfan

Re: QBI Passive loss c/f should not have a value when no previously disallowed losses are present...

jimavera — Sat, 08 Mar 2025 18:58:20 GMT

@PatriciaV Hmm. The update did not fix the problem. I still get the error "Schedule E Worksheet (property name): QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes." QBI Passive loss c/f -642

I sent a diagnostic return, the token number is

112377046-70468638

Please help. This is preventing me from filing! Thanks.