Amended tax with k- 1 showing loss, yet taxes went up.

[clay52]

I had my first K-1 for a family LLC.    Line 1 shows loss of (-$1,048).  Line 2 shows net real estate income of $2,367.  I had to amend my 2016 filing and assumed I would get a refund because of the loss, but instead I owe both Fed and State.  (line 14 does show the self-employment loss of -$1,048).   Why is this adding to my taxes if the LLC showed a net loss?

[RichardG]

Line 2 shows income of $2,367, and that's what is increasing your taxes.  The loss on line 1 is a different type income, so it doesn't directly offset the income on line 2.  Depending on your other income and other information on the K-1, the income on line 1 may be offsetting other income on your return, or it may be a suspended loss that will carryover to 2017.