Rental Property

[Gablestime]

For my rental income, the total expense amount being displayed on the Summary screen is the same as the income amount even though my expenses are higher.  The  Assets Depreciation amount is also showing $0 instead of my expected depreciation amount.  Anyone else encounter this issue?

[DianeW777]

It depends.  There are some questions that may be affecting your results, in particular whether you were an 'active participant'. 

Open your TurboTax Desktop return:

1. Click the Business tab > Click Rental Properties and Royalties > Update
2. Continue to the property and select 'Edit' > Click on Property Profile
3. Continue making sure you have selected the correct answer until you reach 'You indicated You Actively Participate'
4. If you are making all the decision about the property then you are an 'active participant'.

Please update this post with more details if you have more questions.

[Gablestime]

Thanks for the response Diane.  I did as suggested and the total expense amount remained the same as the income amount.  Going through the property profile screens I indicated that it was a Vacation or short term property.  That I have passive activity losses carried over from prior year.  That I rented it out for 240 days and used it for personal use 33 days. I own 100% of the property and that I owned it all year and finally that I am an active participant in the property

[DianeW777]

It sounds like you were not using the property when it was rented since you used it only 33 days personal use in the year. 

Also, it depends on what you entered on the screen 'Do any of these situations apply to this property?'  Answer any that apply to you (see the image below).

• You must be sure you do not indicate you have money in the property that you are not 'at-risk'. 
• On the screen 'Was this property rented all of 2024?' answer No and enter the rented days and personal days.

My results show a loss including the carryover loss.

                   

              

[Gablestime]

I went through the property profile screens again and my screens are identical to the screen shots you provided.  Rental income and expenses are still both the same amount and asset/depreciation is $0

[DianeW777]

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions: 

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return 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 and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  

[Gablestime]

Thank you.  The Token Number is 123145696588327-88974979

[DianeW777]

Please provide the state and I can review.

@Gablestime 

[Gablestime]

My state of residence is Massachusetts.  The rental property is located in New Hampshire.

[DianeW777]

As I review your return, it appears to be handling the loss and carryover losses correctly. There is a loss carrying over to your Form 8582 then it is being limited due to the income on Line 9 & 11, Form 1040. See the Phaseout Rule below. 

The allowed loss is included on Schedule E, Schedule 1 and Form 1040, Line 8. See the calculation on Form 8582.

• Any suspended rental losses will be used up in the year of sale of there is not enough income during the remainder of your ownership.
• All can be reviewed if you switch to 'Forms' in the upper right while your return is open in your TurboTax Desktop.

Phaseout Rule: The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately). If your modified adjusted gross income is $150,000 or more ($75,000 or more if you’re married filing separately), you generally can’t use the special allowance. This is because the special allowance is reduced to $0 since the modified adjusted gross income is over the $100,000 amount.

As far as the qualified business income deduction (QBID), it will continue to be carried over until there is enough income to offset it.

• See Form 8995 for the carryforward amount - 2024 to 2025.

[Gablestime]

Thank you for your assistance.  I have been using Turbo Tax since 2004 and it has always shown the total expenses and depreciation on the summary screen and then adjusted those amounts when it produced the Schedule E.  I was concerned that something was not working properly since I was no longer seeing these total amounts.

Thanks again