Error in Software on Form 8960?

[taxesaretaxing123]

Hello!  I think there is a possible error in the software.

Facts:  

* Schedule C income + Rental income #1 + Rental loss #2 

* Rental income #1 and rental loss #2 are from short term rentals with material participation (nonpassive income)

Issue:

All three of these are going net to NIIT line 4a.  However, for line 4b only Schedule C income and rental income #1 are flowing through.  The loss is not going through from rental #2  (i.e. it is not netting with Schedule C and rental income #1).  

I made rental loss #2 income and it does flow through then.  Why is the program not netting the loss on 4b?  I read the IRS publication and it seems like it should flow through as well...

[AnnetteB6]

To take a closer look at this situation if would be helpful to have a diagnostic copy of your tax file experiencing the issue.  

The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using and what states you are filing in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

[taxesaretaxing123]

Thanks so much for the response!  I was on the phone for 2 hours yesterday and got this escalated for the developers to look at, so I think it is moving in the right direction.  There is a workaround where I can just enter in the adjustment myself in the worksheet mode so it is more of a "heads up."