Question

Schedule K-1 Problem

Forum|Forum|5 years ago
February 15, 2021
1 reply
0 views

I am working on our 2020 taxes and for some reason my schedule k-1 is not showing a balance in the income section. I can see that last year we had a loss in our k-1 and this year we should too but instead of showing the loss, it just shows $0. Did I do something wrong?

T

ThomasM125

If you took a section 179 depreciation deduction on an asset you purchased in 2020, that can result in your income being $0. You can only deduct the section 179 depreciation to the extent you have income, so if the deduction is more than your income, your income will be reduced to $0 and any remaining section 179 depreciation will be carried over to the next year.

So, your income may be $0, and if so it would be reflected as such on your schedule K-1.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"