Passive Loss Carryforwards

[Cubfan79]

I'm using Turbo Tax Premier to complete my 2024 Federal return. Turbo Tax is reporting a Passive Loss Carryforward from prior to 2018 related to a rental property. The thing is that I didn't purchase the property until 2021. Furthermore, this Carryforward did not appear in my 2021, 2022 or 2023 returns all of which were completed using Turbo Tax. This appears to be a bust in the program.

[PatriciaV]

In some cases, a passive loss carryover is entered for 2018 when the program is unable to determine what year the carryover actually occurred. 

You can review your prior year return Schedule E worksheet for this property. Under Carryovers to 2023 Smart Worksheet, look for "Disallowed Passive Losses by Year and Type" (this may be on a second page). Find the year where the amount was recorded and enter it for the same year on your Schedule E worksheet for the current year.