Schedule E worksheet carryovers to 2024 Smart Worksheet

[amyonghwee]

In 2023, Schedule E worksheet reports

For property A,

L21 Income or (loss)  -$20,489

L22 Deductible rental real estate loss -$3,262

For property B,

L21 Income or (loss)  +$20,001

L22 Deductible rental real estate loss -$15,341

I import 2023 turbotax file into 2024 turbotax to do my taxes.

Under Schedule E worksheet carryovers to 2024 Smart Worksheet

For property A,  Line G Schedule E suspended loss -$17,227, which is correct.

But for property B, it fails the smart check and looking at the worksheet, turbotax has this figure -$15,341, which is wrong. I believe this is a turbotax bug.

Pls help!

[PatriciaV]

It would be helpful to have TurboTax files from both 2023 and 2024 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 Share or Help.)

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. Repeat for each tax year.
4. Reply to this thread with screenshots of your Token numbers (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you.
5. Please include any States that are part of your return - this 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. 

[amyonghwee]

@PatriciaV 

Thanks! Token number as shown below for 2024 and 2023 tax returns!

[amyonghwee]

@PatriciaV 

Besides above error, smart check has 2 more errors relating to 2 rental properties. TT is asking for 2023 passive operating loss. Shouldn't this data be available from TT 2023 import?

[alaninmontana]

I am having a similar issue for my two rental properties.  The message from the review errors says "Schedule E worksheet (rental property address): QBI Passive loss c/f should not have a values when no previously disallowed losses are present for regular tax purposes."  The value in the QBI column for "Carryovers to 2024 Smart Worksheet" line G "Schedule E suspended loss" is highlighted.  Turbo Tax put this value in there, and I don't know where it came from.  The other error message from review is exactly the same for the other rental property.  Turbo Tax told me last week that the March 7th Turbo Tax update would correct this problem, but it hasn't. I started this years return on-line, after years of desktop Turbo Tax.  I bought the download for desktop this week and transferred from on-line, so I could see the actual forms, but this is not helping me understand what is going on.  Please help.

[amyonghwee]

@PatriciaV Can you pls provide updates so that I know how to proceed next ? Thanks.

[alaninmontana]

I'm not sure if the "fix" actually was.  I just deleted the entries TT put in then said they shouldn't be there.  I continued, finished and filed.  Very disappointing.  I've never had an issue like this in over 20 years using TT, and now I'm wondering if TT has been as accurate as I've believed.  I'm certainly not confident in TT anymore. I'll be exploring alternatives for next year.

[AnnetteB6 · Accepted solution]

Thank you for providing the 2023 and 2024 token files.  I did a thorough examination of your 2023 and 2024 returns to see the information that was carried forward from 2023 to populate the 2024 return.  I could see the error that was described in your question on the second rental property shown in your list of forms.  I could also see two additional errors that I will discuss below.  

Next, I took your 2023 return and imported it into the 2024 program to see if the errors were brought forward from 2023, or if they were generated another way.  In my 'new' 2024 return, there were no errors in the carryover information for any of the three rental properties.  

However, there had been at least a week between the time you sent your 2024 token file and when I created the 'new' 2024 return.  This means that there had been at least one program update released in that gap of time.  My belief is that the program update solved the carryover issue since it did not appear in the 2024 tax return I created from your 2023 file.  

So, I can tell from looking at the 2024 token that you have already entered a lot of information into your return and you may not want to start from scratch, so I'll outline the steps for you to take to solve the errors that currently exist.  These errors will be brought to your attention by going through the Smart Check process:  

1. For the error highlighting the -15k value that you mention in your question, delete the entry.
2. For the next error saying Passive Operating Loss must be entered, showing a -17k value on the 2022 line, but zero on the 2023 line, enter the -17k number to the 2023 line and delete it from 2022 (replace with zero).
3. For the next error, it is the same situation as item 2, except the value is -7k.  Move it to 2023 and put zero beside 2022.

If you are curious, you can start a new 2024 return by importing your 2023 tax data file and then take a look at each individual property's carryover worksheet information to see if the errors have disappeared.  Just be careful not to save this new 2024 return without using Save As to change the default name.  Otherwise you could overwrite the return you are working on already.

If you do take this step to create a new return, I would appreciate some feedback to know whether or not the errors were gone.  

@amyonghwee 

[amyonghwee]

@AnnetteB6 Thanks so much for taking the time to follow up and giving  detailed steps to take! These steps help to resolve the errors! While waiting for replies to my questions, I actually spent time reviewing all my rental properties for 2022, 2023 and2024 worksheets, especially individual schedule E worksheet and form 8582. In this way, I could double check that I agree with the capital gain or loss reported by Turbotax. And yes, the figures tally! I am an engineer and feel that I should work hand-in-hand with Turbotax team. Again, many thanks!

As I am now working on my CA and UT state tax, I am unlikely to try a new tax return and import 2023 data to check 🙂