Question

K-1 IDC (Intangible Drilling Costs) should be Active Income, not Passive

Forum|Forum|4 years ago
April 30, 2022
1 reply
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I am a General Partner with material participation in an oil & gas LP with IDC (Intangible Drilling Costs) losses. I entered this info in the K-1 section in TT, but TT does not ask if I materially participate. It classifies the IDC loss as a Passive Income loss. I believe this is incorrect and it should an Active Income loss - and therefore should reduce this years tax due on other Active Income (such as W2 income). Any idea how to make this IDC loss Active Income? It's reported on the K-1 in Box 14 as a Self-Employment loss, so I think it should appear as such in TT.

TurboTax Premier Online

Critter-3

Make sure you choose the correct K-1 form and entered in the correct info and the return will be filled in properly ...

phedwards2Author

Thanks for your reply. Yes that's exactly how I filled it in. The Box 14 Self Employment is a large loss, so I entered a negative number. I think it should reduce my AGI, but it doesn't.