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Lacerte Diagnostics
Moderator
October 2, 2020

45049

  • October 2, 2020
  • 0 replies
  • 1 view

The following diagnostic is generating:

Schedule E #{PrefixNum}: A net loss has been detected on a passive royalty. To get the correct treatment, remove the '2' from ""1=nonpassive activity, 2=passive royalty"" and calculate the amounts manually.

Solution:

Not efile stopping. The diagnostic essentially is saying that it can't calculate the proper loss limitations for a passive royalty.  Calculate the correct amount of deductible loss and override the amount on screen 18 (down in other information)

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