Schedule E error not accepting passive loss

[rapscallion83]

I am on a Mac using Turbotax Home and Business version 2024.r25.036

The system will not accept the 2023 number for operating loss. It says "Sum of losses in individual years should not be greater than the total loss (-18076).  If I enter -18076, I get an error.  If I get -18075 I get an error.    If I get -18077 I get an error.  In short, numbers larger and smaller and equal to the number requested by Turbotax (-18076) all fail.

I noted that the numbers for some earlier years on Schedule E were blank so I went through all my Tax returns from 2018 to the present and entered those into Schedule E as well and I still get the same error.

The system will not let me e-file my taxes due to this "error" - which seems to be a Turbotax bug.
That means I need to incur printing and mailing costs to file by paper to meet the deadline.  And my return will be processed 4-6 weeks later than if I had e-filed.

How can this be solved so I can e-file?

I am not going enter Zero or other incorrect numbers to make this work because it is a form of perjury to make misrepresentations on one's tax form.  See 26 USC 7206.

Will Intuit be paying for our printing and mailing expenses when its software refuses (due to this Turbotax error) to e-file?

BTW, I have read all the threads related to the error where TurboTax does not accept the number in Schedule E for 2023 Operating Loss.  None of the "solutions" mentioned in those threads work.

[rapscallion83]

I note that Intuit's interface says: "Questions are answered within a few hours on average."
That does not seem to be happening.

[rapscallion83]

Well, time has run out and Intuit has not solved this problem.  
Please tell me how to get a reimbursement from Intuit for my printing and postage fees because the Schedule E bug in Turbotax - which Intuit has not corrected and would not provide tech support to solve - has prevented me from e-filing.

[SusanY1]

If you have made entries that TurboTax considers overrides to other data, the return will not be eligible for e-file. 

We still have a little time to attempt to assist you in resolving this, but it's difficult to do without more information. 

To best help, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax MAC Versions:

1. Open your return.
2. Click the Help tab in the menu across the top of TurboTax, select Help again and then select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.  If possible, please provide the number in a screenshot.

[rapscallion83]

You wrote: "If you have made entries that TurboTax considers overrides to other data, the return will not be eligible for e-file. "

a.  Turbotax directed me to enter the number when it gave me the error message.  I did exactly what Turbotax asked and it did not solve the problem.
b.  The reason I entered data from prior years is that Turbotax should have included it but did not.  Schedule E seeks data from 2018 to the present.

Token is 

623706065-44747744

What is the resolution?

[rapscallion83]

In case it is helpful, I uploaded 2023 return too.  Token: 

623706065-41412974

And 2022 return.  Token: 

623706065-49774977

[SusanY1]

Give me just another few moments, please.  I have found the issue, and am just working on the easiest set of steps to assist you in clearing the error.  

[SusanY1]

In the interview there is a question about the passive loss carryovers for 2023 that probably should read cumulative losses.  It comes before the breakout of the other screens, adding to the confusion.  

The simplest way to resolve this error is to switch to the "forms" view from the main body of the TurboTax program by clicking on the Forms icon (don't try to fix from that error pop up screen).

Scroll down the list of forms on the left, and look for the red ! mark.  Click on this form to switch to the Schedule E worksheet for this property

Next look for the "Passive Loss Carryovers", Line G - Schedule E suspended loss

Update the -18,076 here to the total of the numbers in the year-by-year boxes.  You will find those entries below this one if you scroll down a bit more.  Just add those together and scroll back up to place that total here on line G.

[rapscallion83]

Do I only change the number in the leftmost column (Regular Tax) for line G Schedule E Suspended Losses?
Or do I change the middle column (QBI) as well?

[SusanY1]

I only changed the one in the leftmost column (Regular Tax). The other one didn't seem to be causing any problems.   If you feel like the ones on the leftmost column are not correct, you can adjust them but the goal is that the individual items on the section "Disallowed Passive Losses by Year and Type" should add up to the same number in the QBI column on the Carryovers to 2024 Smart Worksheet (Line G).  

I will keep an eye on this thread this evening in case you encounter any other issues or have additional questions. 

[rapscallion83]

For those who need to calculate QBI amounts of disallowed losses, my research indicates that if these are losses related to rental real estate, you need to back out mortgage interest paid in order to calculate the QBI amount.