Undesired Form 8582, Worksheet 6, Column C (allowed loss) Forced Allocation

[OnTheOpenRoad]

Background:
I have four short-term rental investment properties, which I have owned for several years now. The total income is usually less than expenses. Hence, I have built up Schedule E unallowable losses that have carried forward since inception. I have sold one of the properties and elected NOT to do a 1031 exchange. I have a Form 8582 Line 3d net gain of $5,042 from the sale of that property. As a result, it is permissible per IRS rules, "should you choose so" (you are not required to, as I understand it), to convert otherwise "unallowable losses" from the remaining three properties to cover this net gain in the same of the first property. For various reasons, however, I do not want to do this.

Problem:
The TurboTax software forces it to occur (which, under most circumstances, would be ideal, but not in my case for other reasons that are not relevant here). Very specifically, the software "automatically" increases Form 8582, Worksheet 6, Column C (allowed loss) spread across the remaining three properties based upon the typical allocation ratios, which decreases Column B (unallowed loss) across each to cover that net gain. The software is doing this automatically, without my preference or control, and I cannot seemingly stop or reverse it.

Hence, the question is, how do I stop the software from doing this?  The help function within the software produces the following response:

"Form 8582, page 3, Worksheets 6 - 7:

Form 8582, page 3, Worksheets 6 and 7 detail the allowed losses for activities and amounts of passive gains and losses used in Form 8582 Passive Activity Loss Limitations calculations. No entries are required on these worksheets. Due to the complex nature of passive calculations, no overrides are allowed on these worksheets. To make adjustments, go to an individual passive activity."

So, in the end, it reads, "To make adjustments, go to an individual passive activity" since you cannot directly modify the worksheet, which is feeding all other areas. However, I can find no section/area/interview changes in the software related to "individual passive activity" to "make adjustments" and stop this from occurring.

Any ideas? This is for 2020 software. Screenshots of the Form 8582/Worksheets show below for reference.

Many thanks!

[RobertB4444]

TurboTax does not have a function to support deferral of Passive Activity Losses.  You would need to manually adjust the return on paper to do this.

@OnTheOpenRoad