topic QBI Passive loss error AGAIN in Get your taxes done using TurboTax

QBI Passive loss error AGAIN

astridwilson — Tue, 28 Jan 2025 16:24:53 GMT

When running the error check, I get an error that states "QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes." This number relates to a Loss from 2018. I got the same error last year. If I eliminate the QBI number listed on schedule E worksheet row G in carryovers to 2024 smart worksheet, the error goes away. I was wondering if this will hurt me down the road. ??

Re: QBI Passive loss error AGAIN

astridwilson — Tue, 28 Jan 2025 16:30:38 GMT

if I put a -1 in the regular tax and ALT tax columns, the error goes away. How do i find what really should be in those cells?

Re: QBI Passive loss error AGAIN

astridwilson — Tue, 28 Jan 2025 16:40:34 GMT

In Turbo Tax 2022. The Carryovers to smart worksheet has passive losses listed for 2018-2021, however in 2023 when I first saw this error, there was nothing in that worksheet.

Re: QBI Passive loss error AGAIN

PatriciaV — Thu, 30 Jan 2025 21:59:45 GMT

Please see the response in this thread from @ThomasM125, which provides a good explanation of the situation and the best option for moving forward with your return.
@astridwilson

To test this further, it would be helpful to have a TurboTax ".tax2024" file.

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 and tag (@) the Expert requesting the token from you.
Please include any States that are part of your return - this 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.

@astridwilson

Re: QBI Passive loss error AGAIN

astridwilson — Wed, 29 Jan 2025 22:31:02 GMT

Re: QBI Passive loss error AGAIN

ThomasM125 — Wed, 29 Jan 2025 22:42:57 GMT

Qualified Business Income (QBI) is your net income from business activities, rental property in your case evidently. If you have a loss in the rentals, then the QBI will be negative. Since it appears you have no rental losses that are being carried forward, the QBI losses associated with them would have been recognized in the periods you deducted the rental losses, so there would be no carryover QBI losses left.

So, there shouldn't be any QBI losses on your tax return assuming you applied your rental loss carryovers from 2018 properly in previous years. In that case, you should delete them from your Schedule E and it won't affect you going forward.

Re: QBI Passive loss error AGAIN

astridwilson — Fri, 31 Jan 2025 03:40:15 GMT

In 2022, the work sheet listed carryover losses for 2018-2021. In 2023, the worksheet was blank except for 2018. Same in 2024, no carryover losses from previous years except 2018???