Edit previous year return after manual 1040x

[NukeLDO]

After filing 2017 returns using Turbo Tax, I had to hire a tax firm and manually file a 1040x to properly account for the sale of an out of state property....it was complicated.

How do I manually adjust my 2017 Turbo Tax file so that I may continue to file 2018 and future returns using Turbo Tax without pulling erroneous 2017 figures into my future returns?

Since I disposed of one rental property last year, taking all of those accumulated passive losses with it, and started another rental property accumulating new passive loss carryovers, it may be easier to just start a brand new return from scratch for 2018 and add the new rental property with 2017 passive loss carryovers to it vice trying to adjust the 2017 Turbo Tax return.

I’ve been using Turbo Tax for years and want to continue, so I’d like to fissure out a way to make this work.

Thanks in advance for any assistance!

[MargaretL · Accepted solution]

You are correct that starting a new return and simply adding carryovers is the easiest and quickest way. Form 8582 specifically deals with the Passive Activity Loss carryovers, so be sure to have it ready when preparing your 2018 tax return.  If you are using TurboTax Online, you would have to create a new account. If you are using TurboTax Desktop/download, you will simply start a new return in your software. 

To adjust manually 2017 TurboTax file, you will have to recreate your amendment, and it must match the exact figures prepared by the tax firm you used. It will be a cumbersome process...