I have three rental properties (in three separate states). Property A has a net income that was offset by passive loss carryovers. Property B (put into use in 2022) also has net income, but this is not being offset by additional passive loss carryovers (generated in prior years from Property A). Furthermore, Property C operated at a loss and those also did not offset Property B's net income. What am I doing wrong or not understanding?
Thank you for the replies. I noticed "NPA" and the 5,181 income was listed on Schedule E Line 26. Property B was incorrectly being treated as a non-passive activity. This was my fault as I had converted the property from a primary residence to a rental property for the 2022 tax year. I incorrectly listed the days as a primary residence as personal use days. After fixing the error, Property B income is now appropriately offset.
You are correct, the passive losses should offset passive income from rental activities. You need to verify that this is not being done, by looking at line 5 on schedule 1 of form 1040. That is where your net rental income will be reported.
You can view your form 1040 and schedules 1 to 3 while working in the online version of TurboTax by following these steps:
The passive losses may be limited ... review the form 8582 ...
You can peek at only the Federal form 1040 and the summary of the state info by going here:
1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2) then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"
Then hit the "Back" on the left side to get back to your tax entries.
To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.
To pay the TurboTax online account fees by credit card, without completing the 2019 return at this time, click on Tax Tools >>> Tools and then Print Center. Then click on Print, save or preview this year's return. On the next page, to pay by credit card, click Continue. On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button. The next screen will ask for all your credit card information so you can pay for the account.
Thank you for the replies. I noticed "NPA" and the 5,181 income was listed on Schedule E Line 26. Property B was incorrectly being treated as a non-passive activity. This was my fault as I had converted the property from a primary residence to a rental property for the 2022 tax year. I incorrectly listed the days as a primary residence as personal use days. After fixing the error, Property B income is now appropriately offset.