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

[jimavera]

I put -1 in the regular loss column and then later got this error:

"Schedule E Worksheet -- Schedule E Two Year Comparison: Sch E loss-priry yr amt must be less than or equal to zero.

Sch E loss-pry yr amt -1.

"

-1 is less than or equal to zero, so I don't know what to do here.

[PatriciaV]

If you had no carryover loss from last year, enter zero. If that doesn't resolve the message, try a positive one.

@jimavera 

[jimavera]

I had losses (-620) carried over from 2023 in both the 'Regular Tax' and QBI columns. 

During final check for 2024 TT showed the same negative value in the QBI carryover column but nothing in the Regular Tax column, and that was flagged as an error.  I tried entering 1 (i.e. positive) and TT said it must be negative so I tried -1 and it accepted that but then got the later error I described previously--saying that -1 was not zero or negative.  Help please!

FWIW I had very large Medical Expenses in 2024 and large Capital Losses so maybe a unusual combination of carryover is present

[PatriciaV]

This experience has been reported to our development team and should be resolved with the update scheduled for Friday March 7, 2025. Because updates are released after business hours Pacific time, we recommend waiting until the day after to run Review again.

Note that TurboTax Online is automatically updated after midnight on form release dates. TurboTax for Desktop is updated when you first open the program.

We appreciate your patience while your concerns were addressed by our programmers.

@jimavera 

@rubesMN 

@Pittfan 

[jimavera]

@PatriciaV    Hmm.  The update did not fix the problem.    I still get the error "Schedule E Worksheet (property name): QBI Passive loss c/f should not have a value when no previously disallowed losses are present for regular tax purposes."    QBI Passive loss c/f  -642

I sent a diagnostic return, the token number is

112377046-70468638

Please help.  This is preventing me from filing!   Thanks.

[PatriciaV]

Since you have a carryover loss on your 2023 return, enter the regular operating loss carryover in Carryovers to 2024 Smart Worksheet, Row G, Regular Tax column.

Now scroll down to the continuation lines by year and enter the same amount for 2022 in the Regular Tax column (this is the row with the QBI amount). Also, enter zero on the line for 2023.

These entries should resolve the Smart Check error messages and allow you to file your return.

@jimavera 

[edited for specific instructions 3/9/2025 | 11:23 AM PDT]

[jimavera]

@PatriciaVShouldn't I have the same loss carried forward to 2025?

Row G, QBI column in the "Carryforward to 2025 Smart Worksheet" is set to 0 and I can not edit it.   How can I make it so TT will import the carryover next year?

Ignoring that question, I tried the changes you gave previously - at least I think I did.  But then another error occurred, saying "Passive Operating Loss should not be greater than total loss ($-624)".  

I will attach three screenshots: The first two showing the entries I made per your instructions, the third the new error.

[PatriciaV]

Your first entry on the Carryover worksheet should be (642) not (624). The difference is the 18 at the top of the third screenshot.

Check the Activity Summary Smart Worksheet above the Carryforward to 2025 Smart Worksheet to see how your Passive carryover loss was applied to the current year income.  Any unused loss from this worksheet flows to next year.

[jimavera]

@PatriciaV  OK, thanks for that correction, which allows Fed & State checks to pass.

However, shouldn't the 642 suspended QBI loss be carried forward to 2025?

I can not find a "carry forward" in forms view which mentions QBI passive loss at all...

[PatriciaV]

The QBI passive loss carryover is also displayed in the continuation page of the Carryover Worksheet in the list by year. So, the value is not lost in case you need to enter it next year. If the transfer process works as expected for tax year 2025, you shouldn't need to make a manual entry for this carryover.

@jimavera 

[jimavera]

@PatriciaV 

> The QBI passive loss carryover is also displayed in the continuation page of the Carryover Worksheet in the list by year.

Can you point me to this more specifically?  I'm looking at the "carryover worksheet" in Forms View and do not see anything about QBI, nor a reference to a "continuation page".  Searching forms for "continuation" only shows a form related to Foreign Tax credit.   The QBI is related to a (domestic) rental property.  Thanks.

I will upload a sanatized return - if you can open it, please refer me to the exact form showing the carry-over.  Thanks again.     Token number 112377046-42707277

[PatriciaV]

This section with Disallowed Passive Losses by Year appears in the section following the Carryovers to 2024 Smart Worksheet. In this section, you can see any carryovers for any year when the loss was disallowed.

[rosalindc2004]

i have the same error from Turbo Tax

please advise

[PatriciaV]

In general, you can zero out the number in the QBI column on the Carryovers to 2024 Worksheet and resolve this form error. The number also appears further down on the worksheet in the related line by year. This will allow you to enter the QBI carryover next year, should it not transfer properly.

@rosalindc2004