topic Passive Loss Carryforwards California Return in Investors & landlords

Passive Loss Carryforwards California Return

chriscolten — Sun, 02 Feb 2025 01:18:44 GMT

When will Turbo Tax update their CA product so that my previously disallowed passive loss carryforwards show up? I have done my CA returns on Turbo Tax since the beginning of time and as such the program should show those in my 2024 tax return (which it does not). I pay way too much to Intuit for my annual tax programs to have to resort to manual entry of this information for each of my rental properties.

Re: Passive Loss Carryforwards California Return

AmyC — Thu, 06 Feb 2025 16:27:44 GMT

Please check forms availability here. The federal and state agencies work their way through the form updates starting with the most used. As they update, we implement the changes.

Re: Passive Loss Carryforwards California Return

chriscolten — Thu, 06 Feb 2025 17:05:01 GMT

Thanks for the reply. According to the chart, CA form 3801 (Passive Activity Loss Limitations) is ready and supported. However my prior year losses are not showing up, even though the show as unallowed losses on last year’s return (which I filed using Turbo Tax).

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Fri, 07 Feb 2025 02:00:17 GMT

In addition to the passive loss carryforwards not showing up from previous years, the CA depreciation schedules do not show prior (only current) depreciation on assets that we put in to service 2-4 years ago. As there was depreciation on previous tax returns, this cumulative amount should show in the prior depreciation column, which it does not. The current depreciation appears to off (too high) as it is noted an DB, which means that the depreciation should decrease (not increase as it shows now) from the prior year. This leads me to believe that both the prior year and current year depreciation amounts for these assets (for rental properties) is incorrect.

The state of CA product appears to have several bugs in regards to rental properties, calculating depreciation on assets, and previous passive loss carryforwards.

Right now I have no confidence in this portion of the CA product and I will delayed in filing my return until it is fixed.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

KeshaH — Mon, 17 Feb 2025 22:05:31 GMT

I'd like to take a look at your return to see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know other states, if any, that are included on the return.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Tue, 18 Feb 2025 00:55:48 GMT

Thank you.

I transmitted my return to you.

#1431478780-06904066

Thanks,

Chris

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Tue, 18 Feb 2025 00:18:01 GMT

no other states apply-only CA

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Tue, 18 Feb 2025 03:55:56 GMT

I also sent my 2023 return so that you can see the amount of the remaining (disallowed) passive loss carryforwards (State of CA-over $130K) that should show up automatically on my 2024 state of CA return, however they do not.

Token #[phone number removed] 43828336

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Tue, 18 Feb 2025 15:58:07 GMT

Token #1431478780 43828336

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Tue, 18 Feb 2025 03:57:27 GMT

Your system keeps removing the first part of the token, thinking it is a phone number.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

PatriciaV — Tue, 18 Feb 2025 17:17:22 GMT

Please post a screenshot of the token number or remove any dashes in the number.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Wed, 19 Feb 2025 16:27:01 GMT

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Wed, 19 Feb 2025 16:29:08 GMT

FYI, even if I remove dashes or add spaces to the numbers your program hides the number and notes it as a phone number. Your program should not use a ten digit number as a part of its token number.

I have taken a photo of the numbers and attached them.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

KeshaH — Thu, 20 Feb 2025 23:09:13 GMT

Thank you for sending your token.

Loss Carryovers:

I notice that your federal return does have some loss carryforward to 2024 from the prior year reported, but I agree that the state carryforward schedules is blank. Is it possible that you had an older version of your 2023 tax file saved and that is what was transferred to 2024?

Depreciation:

- You mentioned within the comments that the prior year depreciation is not populating for several of the assets that were placed in service in the last few years. I looked over the depreciation reports and it looks like the assets that aren't showing a prior year depreciation are assets that you expensed using Section 179 in the year they were placed in service. Since section 179 isn't depreciation, this amount doesn't populate in the depreciation fields.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Fri, 21 Feb 2025 01:56:47 GMT

Thanks for looking over my returns.

Item 1 (Carryforward of previous losses):

When I purchased the 2024 product and I started my return in late Jan., I followed the instructions to import my 2023 return.

You ask me if it is possible that I had an old file from 2023. I have no idea as the import was done by the Turbo Tax product. What do I need to due next to try to fix this issue. I would much prefer that the Turbo Tax program capture the carryforwards as they are from four properties and have complexity to them so I would prefer to try not to manually enter them.

Issue 2 (CA depreciation schedules-Form 3885A):

I sent you both my 2023 and 2024 tax returns. If you look at the 2023 tax returns and look on Form 3885A, you will see the following:

Julianas Way property:

Assets:

Flooring

On the 2023 3885A, the WH shows prior depreciation of $858 and current depreciation of $1,175, which means that the prior depreciation on the 2024 3885A-CA for this property should show as $1,175. The Flooring shows a total of $2,438 prior dep. and $900 current depreciation, so 2024 prior depreciation should show $3,338, it currently shows 0. For AC the prior dep. shows $2,548 and the current dep shows $941, so the 2024 3885A prior dep. should be $3,489.

My concern is that the calculation for the current depreciation (for CA only) for these assets is overstated as the system thinks that no prior depreciation has been taken.

There appears to be similar errors for the new AC asset for the Clint Ct. asset and the flooring on the 102 CP Loop property.

Thanks,

Chris

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

KeshaH — Fri, 21 Feb 2025 14:22:25 GMT

Since you still have access to your 2023 TurboTax program, I suggest saving the new tax file as it is right now and then using that file to transfer to a new tax return in your 2024 program. That would be the easiest way to ensure that you've transferred the correct file to 2024. Then you can review the carryovers and depreciation schedules to confirm the correct amounts are showing for California.

If everything transferred over properly, then we would know that it was an issue of TurboTax finding and transferring the wrong 2023 file. If that's the case, I'd recommend making sure you only save the final version of your return's tax file on your return to avoid transferring incomplete or incorrect data to the next year.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Sun, 23 Feb 2025 19:34:59 GMT

I do not think that this is the issue. I will do as you suggested to rule it out and then if that does not fix the issue, I will need this case to be escalated so that I can get this fixed and my tax return filed.

Also, your suggestion did not give instructions on how to replace the current 2023 tax file with the most recently saved file.

In the future, when you offer a suggestion, please give step by step instructions on how to execute the suggestion in the Turbo Tax program. This will prevent customers from having to get through several AI gatekeepers to get a live person on the phone to figure out how to try to fix the issue that I (as the customer) is having.

It is frustrating that I am several weeks into this issue with no solution in sight. Sounds like aI need to take my business elsewhere next year.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

chriscolten — Sun, 23 Feb 2025 20:13:12 GMT

I spoke to your customer service, I can not switch an imported tax file without starting over. I am not going to start my tax file over on a hunch that you have. My tax file worked for my federal return (from the same file that you think is incomplete). The issue is your state program. Please have your programmers fix the bugs so that the passive loss carryforward and the depreciation works correctly so that I can finish the return.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

nocilor — Sun, 02 Mar 2025 07:44:31 GMT

I'm also encountering the exact same issue. turbotax didn't include the passive loss from 2023. This is a serious issue.

Re: Passive Loss Carryforwards California Return/Rental Property Module in CA product

PatriciaV — Wed, 05 Mar 2025 14:18:38 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.

@nocilor

@chriscolten