Question

Rental Property: "Enter Nondeductible Expenses from Prior Year"

Forum|Forum|2 years ago
March 17, 2024
2 replies
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I'm very confused by this TurboTax screen for "Nondeductible Expenses from Prior Year." I have a short-term vacation rental that we use on occasion but rent out short term. I have located Form 8582 from my prior year but I don't understand which numbers go where. TurboTax 2023 screen asks for operating expenses, depreciation expenses, AMT expenses, AMT depreciation expenses. Yet Form 8582 from 2022 doesn't specify these expenses. Can anyone help me?

I'm using desktop Mac version of Home and Business.

DaveF1006

To clarify, are there losses listed on your 2022 return listed anywhere in Part 1 or Part's 1V-V111? If so, what are they?

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W

writermom3Author

On 2022 tax return, form 8582, it has the following:

Part 1:

1a: 0

1b: 2,930.

1c: 43,098.

1d: -46,028

3: -46,028

Part 5: nothing there

Part 6: nothing there

Part 7:

(c): unallowed loss: $46,028

Part 8:

(c) allowed loss: 0

DaveF1006

Yes, report $46,028 in the first box under operating expenses.

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J

jessikksd-icloud

I have similar question about my 2022 nondeductible expenses from prior year for my rental property and I do have a loss in 2022 but am not clear what number to put. from worksheet 8582.

Part I:

line

1a 0

1b 50,7077

1c nothing

Part 2:

4 50,707

line 8 6,467

line 9 6,467

Part 3

line 10 = 0

line 11 6,467

Part 4

(a) 0

(b) 50,707

(c) nothing

(d) nothing

(e) loss

Part 5

nothing

Part 6

(a) 50,707

(c) 6,467

(d) 44, 240

Part 7

(a) 44,240

(c) 44,240

Part 8

(a) 50,707

(b) 44,240

(c) 6,467

AmyC

Basically I can tell something is wrong here with how these numbers are input

QBI stands for qualified business income. So, you have a rental houses that you spend a lot of time on, like a business, you have a 1099 from self-employment, which is a business type that all add together to create your QBI. It should be all 2023 income. If the job was 2022, you need to delete your Sch C.

The loss is carried over each year to go against gain in future years. Your line 3 for carryover from prior years is blank. Are you saying there should be something there?

You also show a suspended loss for Sch E. You want to make sure you keep these records safe in a digital or paper notebook for your financial investments - separate from your tax return. Of course, all rental tax returns must be kept from house purchase until sold plus 3 years. Be sure you are saving a copy as TurboTax only keeps returns 10 years.

As for the review error, it is correct, you can't put your whole suspended loss down as QBI. Change that entry to match the actual QBI amount.

@jessikksd-icloud