Question

K-1 - Issue with business loss pulling through into AGI

Forum|Forum|3 years ago
April 17, 2023
1 reply
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I received a K-1 this year for a business started in 2022, which reflects a -$40k net rental real estate loss. I have added all the partnership details, % of shares, recourse amounts, capital account information, 199A amounts... everything that is asked for. When complete, the "Wages & Income" screen reflects $0.00 under Schedule K-1. I have tried to re-enter the information several times but cannot get the -40k loss to pull through into my income. Any help is appreciated.

----Full details----

Percentage of share: 40% for all beginning and ending boxes

Liability share (beg/end):

Nonrecourse 0/0

Qualified nonrecourse 0/0

Recourse 0/$500k

Capital Account Info

Opening Capital Account 0

Contributed Capital $500k

Current Year Income -40k

Ending Capital Account $460k

Box 2: -40k

Box 20: Code Z (199A), -40k

TurboTax Premier Online

T

ThomasM125

First of all, a rental loss is a passive loss that is only allowed to be deducted against passive income and then up to $25,000 of ordinary income, provided your adjusted gross income is not more than $150,000. So your income could be limiting the deduction.

Also, you can only deduct a loss to the extent you are "at risk" in the venture, you would have seen a question regarding that when you entered your K-1 schedule.