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I have a K-1 with losses in Box 1

Forum|Forum|5 years ago
February 8, 2021
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Looking to see if there is a fix to get both losses (which are not aggregated) counted on the tax return.

TurboTax Premier Online

Best answer by AmeliesUncle

@dzemach63 wrote:
in box 2.

If the K-1 from the Corporation and an amount in Box 2, that is a Passive Loss. In most cases, Passive Losses can only be used against Passive Income. The unused amount is carried forward to next year on Form 8582.

I suspect that is what you are seeing. The Passive Loss is not being allowed and it is being carried forward.

T

ToddL99

What do you mean by "both losses"? Do you have two K-1s? Where are these two losses reported?

D

dzemach63Author

My S Corp is a partner in a partnership and receives a k-1 with income (loss) in box 2. The k-1 issued from the S Corp to myself shows figures in box 1 and the same figure shown on the partnership k-1 in box 2. Therefore, the singular k-1 reported on my personal tax return has two income lines on it. Only one is impacting my personal tax return.

DaveF1006

Maybe you should clear up some details for me. Your S-CORP receives a K-1 from the partnership. If that K-1 is in the name of the S-CORP, then that is reported in a separate Business return as income received by the S-CORP. At this point, a K-1 gets issued in your name for you to report in your personal return. You need to purchase Turbo Tax Business product to report the income from the partnership to your S-CORP.

Now, that amount reported gets passed down to you and reported as K-1 income in your personal return. You would just report what is included in Box1.

I hope this answers your question. Both K-1's need to be reported as two separate events-one in a business return and one in your personal return.

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