Sec 465(d) carry forward duplication on Schedule E

Forum|Forum|6 years ago
January 19, 2020
1 reply
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Some deductions from my 2018 return were suspended due to the passive activity limitation. Those losses were carried forward to 2019. But when Turbotax carried them forward, they are shown twice in Schedule E. Once under "misc expense" as Sec 465(d) carryover (line 19) on the Sch E worksheet, and again under "depreciation carryover" (line 18c) and "operating expense carryover" (line 19f) of the Sch E worksheet. 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.

TurboTax

Best answer by Anonymous_

The Section 465(d) carryover is in reference to the At-Risk rules, not the passive activity loss limitations.

I have found a link (below) that illustrates how to reverse the at-risk carryover, but I would recommend investigating your prior year return before making the suggested entry.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/section-465-d-is-showing-a-caryover-of-11-210-which-i-believe-is-associated-with-2004-vehicle-i/00/525660

Further, if you cannot locate anything on your prior year return that would suggest that you indicated you were subject to the at-risk rules, I would contact Support (link below) for further assistance.

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

Anonymous_Answer

Level 15

The Section 465(d) carryover is in reference to the At-Risk rules, not the passive activity loss limitations.

I have found a link (below) that illustrates how to reverse the at-risk carryover, but I would recommend investigating your prior year return before making the suggested entry.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/section-465-d-is-showing-a-caryover-of-11-210-which-i-believe-is-associated-with-2004-vehicle-i/00/525660

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