This post has been closed and is not open for comments or answers.

What is a SECTION 465(d) CARRYOVER?

this is being carried over, automatically by Turbo Tax as misc expenses on all my business I had in 2009 and '10
    Cannot get this out., I deleted forms as instructed above and it did NOT HELP It appeared out of nowhere this year. Major TURBOTAX glitch
    • I would love to know how to delete it as well.
    • Deleting forms did nothing for me. I hope turbo tax can solve this or will pay for my audit!
    I went though this yesterday.  If you don't want to claim the loss as a deduction this year, you won't be able to delete the amount or the form if you are completing your taxes using turbotax online.  After chatting with a turbotax rep for about an hour online, she suggested I download the desktop version and it would allow me to delete the amount.  The other option is to re-start your 2010 return WITHOUT importing any information from 2009.  I downloaded the desktop version, started from scratch and was just fine.
      Section 465(d) Carryover relates to "Passive Activity Losses and Credits and At Risk Losses to Bankruptcy Estates of Individuals".

      SUMMARY: This document contains final regulations relating to the
      application of carryover of passive activity losses and credits and at
      risk losses to the bankruptcy estates of individuals. The final
      regulations affect individual taxpayers who file bankruptcy petitions
      under chapter 7 or chapter 11 of title 11 of the United States Code and
      have passive activity losses and credits under section 469 or losses
      under section 465.

      DATES: These regulations are effective May 13, 1994.
          These regulations apply to bankruptcy cases commencing on or after
      November 9, 1992. In addition, the regulations apply, at the election
      of the affected taxpayers, to cases that commenced before, and end on
      or after, November 9, 1992.

      FOR FURTHER INFORMATION CONTACT: Amy J. Sargent of the Office of
      Assistant Chief Counsel (Income Tax & Accounting), Office of Chief
      Counsel, Internal Revenue Service, 1111 Constitution Avenue, NW.,
      Washington, DC 20224, or telephone (202) 622-4930 (not a toll-free

      More can be read at:
      • I have the same situation.  Is Turbo Tax putting this in the right area?
      • I'm having the same problem
      • weird, no clue what this is coming from....
      • ummm...  I have no idea what this is either, but I am getting it too and no matter what I do, I cannot delete it.  It's making me worried....
      • Guys, Please help...

        I'm getting the same error, its sending $10,something to MISC as SECTION 465(d) CARRYOVER.

        IS this bad? I finished my taxes and Audit meter was REALLY HIGH.

        Is it ok to leave it like that?
      • yep have same problem.  Cant delete it. Did not have it before.  Turbo Tax NEEDS to address this!
      • i have never filed for a bankruptcy. why is this automatically being put in?
      • After days researching I believe I found out what this is...

        In 2009, your Business' expenses were probably HIGHER than your revenue, which means you had a LOSS.
        Turbotax automatically transfer last year's loss to this years income, so you could claim and get some back for that loss...

        If you don't want to claim the loss, do the following:

        Home, Click on Delete Forms (bottom of the page), then look for: Carryover Form.

        Delete that form and you should be all set.

        If you had a big loss last year and CAN PROVE IT, don't delete it and enjoy the benefits of having extra $$ in your pocket this year.
        Again, in MY opinion this could make chances of getting audit HIGHER, but if you can prove it, then don't worry about it.
      I found the amount on our 2009 tax return, Schedule C, line 29