Will Turbo Tax handle a K-1 form on my personal 1040 form for a Net Operating Loss from an invetment that I made in a company that filed for bankruptsy this year?

Forum|Forum|5 years ago
December 30, 2020
2 replies
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This was an investment in an LLC with about 100 investors. I was told that I could deduct my entire (100%) loss of $80,000 on my 2020 personal taxes when I receive my K-1 form. I want to know if Turbo Tax will handle this transaction.

TurboTax Online

Best answer by Anonymous_

You need TurboTax Premier or Self-Employed to enter information from a K-1 if you are planning to use an online version.

Virtually any desktop version can be used to enter the K-1 since desktop versions contain all of the forms.

However, you should be aware that you will not have an NOL from this investment unless you are materially participating in the business, although you certainly will have an investment loss (most likely a capital loss).

Anonymous_Answer

Level 15

You need TurboTax Premier or Self-Employed to enter information from a K-1 if you are planning to use an online version.

Virtually any desktop version can be used to enter the K-1 since desktop versions contain all of the forms.

mckearneytomAuthor

Level 2

Thanks for the response. I have been told by the company that my K-1 will state that it is a NOL and that it will state the entire $80,000 loss. I was also told that due to the Cares Act that the entire (100%) of that NOL will be able to be deducted on my 2021 taxes if I have enough income to claim it. I wanted to know if this is correct and that Turbo Tax will be able to handle ths tranaction or due I need to hire a CPA to fill out my taxes.