Sec 465(d) carryover duplicates prior-year losses already showing as carried over

[Jim McK]

Hello,

Turbo tax shows a Sec 465(d) loss carry forward due to my at-risk passive rental property.  I did have a loss carry forward, however the same amounts are also showing on Schedule E as "operating loss carry forward" and "depreciation carry forward" - the total of which is the same amount as the Sec 465(d) amount.  Why are these duplicated?  Should I fix this by putting a negative amount under "any misc expenses" which is where the Sec 465(d) carry forward is shown.  Thank you.

[tagteam · Accepted solution]

The scenario you presented is somewhat confounding.

Did you actually have losses that were disallowed as a result of the at-risk rules or were the losses merely suspended as a result of the passive activity rules?

You might want to contact Support (link below) during regular business hours for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[Jim McK]

The losses from my 2018 return were disallowed due to the passive activity limitation.  So those losses were carried forward to 2019.  But when Turbotax carried them forward to 2019, they are shown twice in Schedule E.  Once under "misc expense" as Sec 465(d) carryover (line 19), and again under "depreciation carryover" (line 18c) and "operating expense carryover" (line 19f).   It seems like the losses should either show up as a Sec 465(d) carryover OR a depreciation and operating expense carryover, but not both.