Report Carryovers (Form K1)

Forum|Forum|3 years ago
May 10, 2022
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I have a K1 that has carryover from previous year. In my last year's return in form 8582 Worksheet 5 & 6, it says that the form or schedule to be reported on is 4797 Part 1. Any idea which category of passive loss carryover I should be reporting this loss on?

Note that this loss was reported on last year's Form 1065 in Box 9a (Net long term capital loss)

I had a tax preparer do my taxes last year and he claims that he can't provide the worksheet

Thanks

Mike9241

if last year's preparer did your return correctly box 9a on the k-1 is not passive. it's for portfolio capital losses. thus the capital loss should have gone to schedule D line 12 without limitation. if your 2020 capital losses exceeded your capital gains on schedule D what you have is a capital loss carryover. line 16 of schedule D would show the loss. your carryover would be reduced by line 22

there can be passive capital losses but the k-1 you got should have reported them on line 11

if an amount is showing up in part 1 of form 4797 it's been used and there is no longer any carryover. however, that loss can convert to a net operating loss if your other net income was insufficient to absorb the loss. we can't see last year's return so we can't be sure of any carryovers to 2021