Question

K-1 Loss Rental Property

Forum|Forum|3 years ago
March 18, 2023
1 reply
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My husband (joint filing) has an LLC with siblings, running a family real estate rental where he got a k-1 showing a small loss in 2021 and 2022. He is at-risk, actively participates, has substantial basis and we make under $100k. I must have answered the TT questions wrong last year because it didn't show the loss on schedule E in 2021 but as an unallowed loss on form 8582 part Vll.

I need to amend last year's return, however I'm almost done with 2022's return and it also is not recognizing the loss on schedule E even though I believe I've answered all the questions correctly. I've done a ton of research and tried everything I can think of. He is not a real estate professional. Is it recognizing the LLC itself (by EIN#) as a passive loss activity and therefore not giving me the special $25,000 allowance for passive losses? I've deleted the K-1 and re-entered to no avail.

A

Anonymous_

Employee

I have a test copy of TurboTax and have created a test return with a K-1 from an LLC and a rental real estate loss with total income below the threshold for the $25,000 special allowance. That allowance appears on Line 5 of Schedule 1 in my test return.

If you are seeing a different result, it could be that the loss appears in a different line on your K-1.

On which line on your K-1 does your loss appear?