Manually enter passive loss amount from prior years

[yosemite798]

Hello Everyone, 

   I am in the process of preparing tax return for 2025. I installed TurboTax premier 2025 desktop edition software. 

   Filing status: Married file jointly

   We have two rental properties: one Single family home, one townhouse

   Our 2024 tax return was filed by the accountant. I only have PDF file (no .tax2024 file).

   1. On form 8582 (2024) Part VII column (c) Unallowed loss listed for townhouse is $24,957.00

        On form 8582 (2024) Part VII column (c) Unallowed loss listed for single family home is $3,505.00

        1a. I would like to confirm $24,957 and $3,505 are the correct numbers to enter for passive losses from prior years. reference: https://tinyurl.com/mv7nrezv 

        1b.  I entered wrong passive losses for both rental properties. After doing online research seems like the best way to re-enter correct figures is to remove two rental properties, then created new rental property in order to see the "Pass Losses from Prior Years" prompt.  I tried to edit existing rental property, but I wasn't able to see "screen entitled Do any of these situations apply to this property" screen.  online reference 

2. How to enter HOA fee for the rental property

     The townhome has HOA fee, should I enter it on Schedule E under management fee category?

     3. How to determine rental property has QBI income or not?

         Form 8995 (2024 tax return) line 9 amount is $480.00

     4. On Schedule E worksheet under Ownership percentage section. Should I enter 100% for both single family home and townhouse?

[DianeW777]

The answers to your questions are shown below for your convenience.

1. a. Yes, they are the correct numbers.  Form 8582 will show you the correct passive loss carryover amounts in Part VII Column (c) or VIII Column (b) for each property.

• b. Enter the Unallowed Passive Loss carryovers using the instructions here: Passive Activity Loss Carryover Entry :
  • Assuming your passive losses were carried over each year, this will be a separate and identifiable entry which will carry to the Schedule E.  The full remainder of passive loss carryover is used in the year of sale as an expense. 
  • When you are on the screen 'Do any of these situations apply to this property?' (Property Profile section), be sure to check the box under Carryovers. 

2. Yes, you can enter the HOA fees under management fees or you can select Miscellaneous Expenses and name it.

3.  QBI requirements are shown below. 

4. Yes, if you purchased the rental properties, and have a loan, you still enter 100% Ownership as the percentage on both properties.

Generally, a rental property does not carry the time requirements to be considered as eligible for the qualified business income deduction (QBID).

• Can I get QBID for rental property income?

Generally, this means each rental real estate enterprise (a rental property or group of similar rental properties, including K-1 rental income) must satisfy these three requirements:

1. Each enterprise maintains its own books and records to track income and expenses.
2. An enterprise that has existed less than four years performs at least 250 hours of rental services per year. For an enterprise in existence for four years or more, this test needs to be met for any three of the five consecutive taxable years ending with the taxable year.
3. (Starting with tax year 2019) Contemporaneous records of services performed are kept which includes who performed the service, description of service, the date of the service, and how long it took (who, what, when, and how long).

@yosemite798