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June 15, 2023
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How to include prior years unallowed loss for passive business investment the year after final k-1?

  • June 15, 2023
  • 1 reply
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I passively own a small portion of a company that switched from being taxed as an LLC to a C-corp at the start of 2022. Therefore, last year I received a final K-1 for 2021. No sale or disposition has occurred. I was told for 2022, I would not be issued any tax documentation from the business.

 

I have unallowed losses that accumulated during the years that the company was issuing K-1s. My understanding is that I need to continue to show those prior years losses on my return (form 8582), however since I did not receive a K-1 this year, I don't know how to get them into TT. Can anyone advise on how I can include them? I read another post that seemed to suggest I could input a K-1 for 2022 (even though I didn't receive one) that would trigger TT to allow me to enter the prior years unallowed loss, but that seemed wrong to me.

Best answer by Mike9241

it would seem the only way to show these PAL c/o's on form 8582 is to continue with the k-1 and just enter 0 for income.

i could not find any other way to show the losses on the 8582 except by override and that voids Turbotax accuracy guarantee. 

 

1 reply

Mike9241Answer
June 15, 2023

it would seem the only way to show these PAL c/o's on form 8582 is to continue with the k-1 and just enter 0 for income.

i could not find any other way to show the losses on the 8582 except by override and that voids Turbotax accuracy guarantee. 

 

cabillAuthor
June 27, 2023

Sorry for the delayed reply, but thank you very much for your response.