I am a fiduciary working on my 2017 Trust Taxes using Turbotax Business. The Trust's only real asset is a home with a mortgage. I live in the home and receive small rent income from a renter who lives in the home as well. I report the rent as Trust income and attribute the mortgage interest and property taxes as Trust expenses. Year after year, the expenses exceed the rental income.
For 2017, I have completed the Turbotax queries and sure enough there are no taxes owed. However, Turbotax recognizes an error during its final check process. The resulting screen states:
"Check This Entry"
"Explanation Stm: Detailed Explanation-1 must be completed. Enter your explanation here to complete the Net Operating Loss Carryforward Explanation Statement."
Then, Turbotax provides a field where I can enter text (for Form 1041 line15b).
Detailed Explanation: [________________________________]
I have no clue what I am supposed to write in the text field. I used Turbotax in the past three or so years for the Trust. I know that in 2016, the Trust's expenses similarly exceeded the income (or used the prior year's operating loss to exceed 2016 income) and no taxes were due. The Trust has never owed taxes in any year of its existence.
Still, I have never encountered this issue asking me to provide a "Detailed Explanation." It is preventing me from E-Filing on time. I assume that since no taxes are due, there's no harm to not filing on time. In any event, I am at a loss at what to do. Shouldn't Turbotax retrieve data from the Trust's 2016 return and populate this "Detailed Explanation" field?
Can anyone help?