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QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

I am receiving this error in the Schedule E worksheet for 2024:

Screenshot 2025-01-26 175614.png

The software wants me to remove the $5,004 entry, however this entry is accurate if you look at the 2023 Schedule E Worksheet and Form 8582 Part VII (a).  There is no regular tax or AMT suspended loss to input.  I am at a loss as to why this error is occurring, thanks in advance for any assistance.

Screenshot 2025-01-26 175815.png

 
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9 Replies
PatriciaV
Employee Tax Expert

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

It would be helpful to have a TurboTax ".tax2024" file to test this issue further.

 

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

 

In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose File >> Share.)

  1. Choose Send Tax File to Agent.
  2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
  3. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you. 
  4. Please include any States that are part of your return - the is VERY important. 

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

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QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

@PatriciaV I am using the online version of Turbo tax and can only download my .tax files for 2023 and earlier.  Are there different steps to download the diagnostic file you can use on Turbo Tax online?

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

@PatriciaV I actually figured it out.  The token number is 1264049

PatriciaV
Employee Tax Expert

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

Please provide the complete token number, which has a long number, a dash, then a shorter number. The instructions for TurboTax Online are below. Please include the name of your State(s) as well.

 

In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools

  1. Then select Tools below Tax Tools.
  2. A window will pop up which says Tools Center.
  3. On this screen, select Share my file with Agent.
  4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
  5. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
  6. Please include any States that are part of your return - this is VERY important.

@Pittfan 

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QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

@PatriciaV Thanks, I followed the instructions, and this is what it gave me, the token number is not formatted as you mentioned: 1264325.  I have PA and WV as my states as well.

Screenshot 2025-01-30 154323.png

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

for your information, it is possible to have a QBI passive loss carryover but not a passive loss carryover, they are two separate things

 

example passive loss from rental real estate $10K, QBI passive loss also $10K

adjusted gross income $140K

the passive loss for regular tax purposes is allowed but since the QBI is a loss, it doesn't just disappear but becomes a carryforward to offset QBI income in future years.. 

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

Thanks, I feel like that is the situation I am in, but the software is not allowing me to carryforward the QBI one.  Very frustrating.

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

@PatriciaV Good morning, have you had a chance to review the test file?

PatriciaV
Employee Tax Expert

QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes

The resolution is to enter 1 or -1 for the regular carryforward. This will allow the QBI to be carried forward to next year's return.

 

The experience has been reported to our development team for investigation. It's unlikely this will be addressed before the filing deadline.

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