Final K-1 1120S on a passive activity

Forum|Forum|3 years ago
March 27, 2023
2 replies
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How do I show in Turbo Tax that my entire interest was disposed when the 1120S disposed/sold "all" the property "Land" used in that passive activity which realized a gain. To be able to offset my passive loss against the gain. It only ask if I sold my interest?

JohnB5677

In your business tax return, you will have to close all assets, and post it as a final tax return.

When entering the 1120-S K-1 in your individual taxes there will be an interview question:

"Your 1120-S" - More Info.

Select "This S corporation ended in 2022."

By completing both the business and individual tax returns in this way, you will have disposed of all assets.

If this does not completely answer your question, please contact us again and provide some additional details.

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OvbraveAuthor

If I put I disposed of the asset it request sale information (dates, cost, basis etc) and compute gain that is already flowing through from K-1 again (double tax).

JohnB5677

I may not understand the question.

Was your business closed out, disposing of all of your assets, and reflected on your 1120-S K-1?
If that is the case, you should not enter anything other than the K-1 on your personal tax return.
Do you have business assets that are included on your personal tax return?
Where is it asking for (dates, cost, basis, etc.)?
- Is it in your individual return, or
- Is it when posting the K-1?

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Mike9241

was the land owned outside of the S-Corp by you? then that sale has to be reported separately on your 1040. if it was owned by the S-Corp it's the S-Corp that should have reported the sale and then everything flows through the k-1 except the reporting of the closing of the corp. sales price equal to the liquidating (final) distribution. tax basis used is just before that distribution. in theory if always an S-Corp and you were always the only owner the two should match so no extra gain or loss.

OvbraveAuthor

Land was purchased between 4 partners and contributed to 1120S. SCorp reported the sale and flow through to us in K-1. Question how do I offset capital gains from this 1102S passive activity against my suspended passive losses from my other passive activities in Form 8582 in my Form 1040? thank you

AliciaP1

Enter the information from the Schedule K-1 you received in TurboTax and mark you have passive activity losses that are carried forward.

To enter your Schedule K-1 in TurboTax Online you can follow these steps:

Sign in and open your return by selecting Pick up where you left off under a section.
Search for K-1 and select the Jump to link at the top of the search results.
This will take you to the Schedules K-1 or Q screen.
Answer Yes and follow the prompts. You may be prompted to upgrade to Premier, if you're not already using it.
We’ll ask some questions about your K-1, and then you’ll enter the data from the form.
When you get to the Other Situations screen, mark I have passive activity losses carried over from last year.
Enter your loss information on the following screens.