Form 8960, line 4b shows as positive number for loss instead of negative.

I have real estate investment. TurboTax filled out form 8960, but it seems incorrect to me.

Form 8960 Worksheet:

Adjustment for trade or business income not subject to net investment tax is $(5000), that is, negative $5,000

Form 8960:

Line 4a: Rental real estate, royalties, partnerships, S corporations, trusts, etc.: $10,000

Line 4b: Adjustment for net income or loss derived in the ordinary course of a nonsection1411 trade or business: $5,000, that is, positive $5,000.

Line 8: Total investment income is: $15,000.

This does not makes sense. How come, the loss in rental income, as per 8960 Worksheet is becoming positive in form 8960 and being calculated as an income?

262

Level 15

Oct 11, 2023 6:21:16 AM

The program is correct ... read the instructions carefully ... https://www.irs.gov/pub/irs-pdf/i8960.pdf

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Form 8960, line 4b shows as positive number for loss instead of negative.