I'm using TurboTax Family and Home 2024. I had an unallowed rental income loss (passive income loss) from last year that I couldn't take because my income was too high.
This year, my income is below the threshold, so I can take the passive rental income loss (as calculated by form 8582), but for some reason TurboTax is putting last year's unallowed rental loss on this year's net operating loss (Schedule 1, Line 8a). The program states, "Here is your allowed net operating loss (NOL) carryover you previously entered from your 2022 return."
This is incorrect, because that is not a net operating loss. It was a passive income loss, subject to the calculations of form 8582 and is included on Schedule 1 Line 5 (Rental real estate, royalties, partnerships, S corporations, trusts, etc.) But I cannot figure out how to override this in the program, since it is automatically entered.
How can I remove this amount from the Net Operating Loss line?
I think you mean you are using TurboTax Home & Business.
TO DELETE THE NOL
Select the Business tax and scroll down to
Less Common Business Situations
Scroll down in the section to
Net Operating Loss/QBI carryforward Loss START or UPDATE
Clear out any numbers, replace with 0
OR
For Desktop, Switch to FORMS (top right)
Scroll down to Carryover Wks and delete
TO ENTER THE PASSIVE LOSS CARRIED OVER
Go to the Rental Section
If the rental is still active, select EDIT for that rental
Select "Property Profile"
Third screen in asks about Carryovers, Select "I have passive activity real estate losses carried over from a prior year" and CONTINUE
Enter the amount on the following screen. If you have not been subject to AMT, enter the same in both boxes or adjust for the AMT amount if applicable
If the rental is no longer active,
Go through the rental section to get to that same screen.
Enter the property the loss was taken on for the profile to get to that screen
Select only the answer to enter the loss carryover
Select NO it was not rented all year Enter zero days rented zero days used for personal use
DO NOT ENTER INCOME NOR EXPENSES
The loss will be listed on Schedule 1 line 5
I think you mean you are using TurboTax Home & Business.
TO DELETE THE NOL
Select the Business tax and scroll down to
Less Common Business Situations
Scroll down in the section to
Net Operating Loss/QBI carryforward Loss START or UPDATE
Clear out any numbers, replace with 0
OR
For Desktop, Switch to FORMS (top right)
Scroll down to Carryover Wks and delete
TO ENTER THE PASSIVE LOSS CARRIED OVER
Go to the Rental Section
If the rental is still active, select EDIT for that rental
Select "Property Profile"
Third screen in asks about Carryovers, Select "I have passive activity real estate losses carried over from a prior year" and CONTINUE
Enter the amount on the following screen. If you have not been subject to AMT, enter the same in both boxes or adjust for the AMT amount if applicable
If the rental is no longer active,
Go through the rental section to get to that same screen.
Enter the property the loss was taken on for the profile to get to that screen
Select only the answer to enter the loss carryover
Select NO it was not rented all year Enter zero days rented zero days used for personal use
DO NOT ENTER INCOME NOR EXPENSES
The loss will be listed on Schedule 1 line 5