Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

passive losses and income

jnanos
Level 2

Taxpayer has 9 residential rental properties and 1 farm rental.  Actively participates in all.  Farm rental has income of $12,612.  $ residential properties have losses totaling $(100,775) and 5 residential properties have income of $32,650.  I am missing something because Lacerte is allowing $12,612 of loss to offset the farm rental income and taxing the $32.650.  Shouldn't my income of $45,262 absorb that much loss and leave a passive loss carryforward of $55,513?  All rental property screens a marked the same, as passive with active participation and not a real estate professional.  HELP!

Labels (1)
0 Cheers
9 Replies 9
sjrcpa
Level 15

Is Farm rental on Form 4835?


ex-AllStar
0 Cheers
jnanos
Level 2

Yes.  Believe it or not I got it to work.  I marked all the properties as "real estate professional" taking them out of the loop or whatever they were in, then unmarked all.  Now it is working, offsetting the passive income against losses and calculating the proper passive loss carryforward.  Go figure!

TaxGuyBill
Level 15

@jnanos wrote:

 $ residential properties have losses totaling $(100,775) and 5 residential properties have income of $32,650.  ... and taxing the $32.650. 


 

Did you accidentally indicate they are self-rentals (or rental of land)?

Is there any personal use of the properties?

jnanos
Level 2

No.  No self rental, land rental or personal use of property.

.Believe it or not I got it to work.  I marked all the properties as "real estate professional" taking them out of the loop or whatever they were in, then unmarked all.  Now it is working, offsetting the passive income against losses and calculating the proper passive loss carryforward.  Go figure!

TaxGuyBill
Level 15

@IntuitAustin  or @IntuitBettyJo 

 

Do you guys readily get the notification if we mark a post as spam (see above)?  Or should we specifically 'flag' one of you?

IntuitBettyJo
Community Manager
Community Manager

Hi @TaxGuyBill 

We readily get notifications when an item is reported as inappropriate.  Thanks for asking.

-Betty Jo 

PS. IntuitAustin was offered an awesome opportunity outside of Intuit, so for now its just me.  I will make sure to let you all know if/when that changes. 

 

0 Cheers
sjrcpa
Level 15

He didn't even say goodbye. 😢


ex-AllStar
0 Cheers
Sarrah Noah
Level 1

Recently, despite the economic crisis due to covid-19, taxes have increased, and my business has suffered large losses

0 Cheers
katekotc
Level 1

I was just shocked by how much taxes and prices for everything increased during the pandemic. I understand that this is how the economy is preserved, but it is too difficult for people. Personally, I had a business in which I invested a lot of money and effort. Still, unfortunately, high taxes at the height of the pandemic almost ruined my business. As a result, I was out of work for a long time until my friend showed me that you can play games for cash. These applications help me earn about 5-6 thousand dollars per month without spending a lot of time and effort. Thus, I will soon be able to overcome this crisis and get back on my feet.

0 Cheers