K-1 has royalty inc. in Box 7, & $107,852 of royalty deductions in Box 13.I and Box 20.B. Form 8582 shows $107,745 PAL, why? There is no loss & its not passive.

Forum|Forum|3 years ago
July 5, 2022
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(The partnership accountant says this is wrong, he says "My best guess is that the portolio deductions are being treated by QB as passive losses instead of reductions to royalty income." but I can't figure out any way to change this and have confirmed I am entering the K-1 info with the right codes in TT).

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Mike9241

did you link the royalties (line 7) to schedule E (required)?

royalty expenses should not be included in PAL. when I did not link in Turbotax it did not show the royalty expenses on either form 8582 or schedule e

we can't see your return

you'll need to review the supporting worksheets for form 8582 to see what entity/activity is generating the PAL

or contact support which you can allow to look into your return to see what's happening.

tutbotax does not use 20B.