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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!

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4 Replies 4
sjrcpa
Level 15

Is Farm rental on Form 4835?


ex-AllStar
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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!

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TaxGuyBill
Level 14

@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!