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March 13, 2024
Question

passive losses for rental property that we did not rent this year--Schedule E errors

  • March 13, 2024
  • 1 reply
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I filled out everything in Turbotax as instructed, and then during the final check, it keeps throwing up an error on Schedule E for a property where: 

1) we did not rent it out at all this year (0 days rented out);

2) we have a passive loss carryover from a prior year

 

Turbotax automatically generated Schedule E based on this information that we had entered, but during the check it keeps throwing up the error "Days rented must be greater than or equal to 15.  If number of days rented is less than 15, the income and expenses should not be reported on this schedule."

 

However, I did not create the Schedule E--turbotax did.  I have no idea how to proceed.  It provides no guidance on how to proceed.  I am completely stuck.  I'm hoping someone here can help?

 

Thanks in advance!

1 reply

KrisD15
March 13, 2024

To clarify, did you take the rental out of service in 2023? 

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cwynAuthor
March 13, 2024

Thanks for the reply, @KrisD15.  It is possible that we will rent it out again in future at some point, but right now it is just for personal use (for 2023 and the foreseeable future).  

KrisD15
March 13, 2024

In that case, you will want to indicate in the program that it was converted to personal use in 2023 in order to stop depreciation. 

Be aware that you need to record the basis and depreciation of the rental, land and any other assets listed for the rental. 

If you again use it as a rental, you will need theses numbers to again setup the rental.

If you sell the property, Depreciation Recapture may need to be addresses. 

 

You can always report the Passive Activity Loss on the screen found in the Rental section.

Do not enter any expenses or income. 

 

 

 

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