cancel
Showing results for 
Search instead for 
Did you mean: 
Visitor II

Passive rental loss for Canadian investor

I have a married couple client who live in Canada.  I have been using TurboTax to file his tax returns for him since 2010.  He has a condo in Hawaii.  He rents it out and he also lives there on occasion.  He has a rental property company take care of it for him.  I checked off the boxes to state that he is not a real estate professional (he is actually a lawyer).  They only file the 1040 for only the rental property in Hawaii and that is there only tie in with the USA for tax reporting.

 

I just noticed that he does not have any passive loss carry forwards show up on his TurboTax summary in the Schedule E.  He has made a loss every year since 2010 until now.  I looked at copies of his past 1040's and it shows a full loss on the first page of the 1040 (it is a negative number in the Line 17) when there should be a zero (if the loss carryforwards worked properly). 

 

Is there something that I did not click off on to let TurboTax know that his losses should be passive and NOT active losses?  What do I need to do now to fix all his losses that appear on his 1040 to be passive losses?

 

Thank you in advance for your help everyone.