Passive Income/Loss from K-1

[Oscar Zilch]

I am trying to enter an "other" passive income item and an "other" passive loss item from Schedule K-1 to Schedule E. I can enter "other" passive items but they don't flow to Schedule E. The K-1 instructions say that these "other" items (if passive) must be entered directly on the appropriate form--in this case, Schedule E. The only way I see to do that is through an override, which makes electronic filing impossible. Can anyone help?

Note: the passive loss in question is a currency loss from an investment limited partnership. 

Thanks. 

[PatriciaV]

Did the partnership provide specific instructions on where to report this loss on Schedule E? The Partner’s Instructions for Schedule K-1 Box 11 contain a long list of possible entries for "other income." It's possible this currency loss may be reported on Form 4797 or even Schedule D. You may need to contact the partnership for better instructions.

[Oscar Zilch]

There were no specific instructions, other than it was a currency loss. It is an ordinary loss, but I don't think I can deduct it as the partnership is a passive activity. That's why I would at least like to get it in as a passive loss so that it may be deducted at future some point. I had one thought that would work, although it would not be reported properly. This loss could be netted with the partnership's business income (which is passive). Obviously, not on the correct line but essentially accomplishes the same result. I really don't want to show it as an active loss, which would not be correct, but I don't want to lose it, either. Thanks.

[Mike9241]

tell us what line on the k-1 shows these and if there is a letter, like A,B,C, with the line number 

[Oscar Zilch]

Line 11i. Then notes say Section 988 loss. Thanks.

[PatriciaV · Accepted solution]

Activity reported on Schedule K-1 Box 11(i) is often entered on the partner's tax return in areas other than the K-1. In the case of Section 988 gain/loss, you would enter this as Other Reportable Income. 

According to Section 988: "Except as otherwise provided in this section, any foreign currency gain or loss attributable to a section 988 transaction shall be computed separately and treated as ordinary income or loss (as the case may be)."

To find this area of TurboTax, go to Federal taxes >> Wages & income >> Less common income - Misc income 1099-A 1099-C >> Other reportable income.