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Level 2
posted Sep 12, 2022 11:23:59 AM

TurboTax ERROR: AMT (Form 6251) should NOT be generated for Renting One's Home

Making this a New Post in the Correct Category:

 

I rent my residence when I'm not here and live in it for more than 14 days and thus THIS IS NOT CONSIDERED A PASSIVE ACTIVITY.  But, Turbo Tax is erroneously generating a Form 6251 (AMT) and putting an amount on the "Passive activity" line, which is number 2m.  

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1 Best answer
Level 2
Sep 13, 2022 12:10:06 PM

RESOLVED:  I upgraded to "Live Support" and heard back within a day from TurboTax's AMT Specialist Marty (from Colorado), a CPA with 40+ years tax experience and he figiured out how to enter prior-year nondeductible rental expenses so that they are NOT read as "passive" losses by the program.  As originally noted, passive loss limitations do NOT apply to rental losses when you rent out your own dwelling as long as you live there 14+ days annually (or greater than 10% of the time rented).  

3 Replies
Level 15
Sep 12, 2022 1:20:27 PM
Level 2
Sep 12, 2022 1:23:28 PM

That was the original e-mail, which I turned into a new thread as noted to get it in the right category.

Level 2
Sep 13, 2022 12:10:06 PM

RESOLVED:  I upgraded to "Live Support" and heard back within a day from TurboTax's AMT Specialist Marty (from Colorado), a CPA with 40+ years tax experience and he figiured out how to enter prior-year nondeductible rental expenses so that they are NOT read as "passive" losses by the program.  As originally noted, passive loss limitations do NOT apply to rental losses when you rent out your own dwelling as long as you live there 14+ days annually (or greater than 10% of the time rented).