Can I get a deduction for previously unallowed losses when I receive a final K-1 for a long held not publically traded passive limited partnership?

[STARMAN99]

The Final K-1 Section L for this Independence Tax credit Plus II (Not a PTP) shows a beginning balance of -$646, current year increase of $855, withdrawals/distributions of $209, and ending capital account of 0. I have previously unallowed passive losses of $10,043. Now that I do not have any other limited partnerships that generate passive gains/losses, can I deduct the previously unallowed passive losses from my regular income? How can I do this with Turbo Tax? Thank you.

[LudwigVan_fan · Accepted solution]

Generally, in the year of a complete disposition of a passive activity, suspended losses may be deducted in that year.

https://www.irs.gov/forms-pubs/about-form-8582-passive-activity-loss-limitations

See also Publication 925, Passive Activity and At Risk Rules

https://www.irs.gov/pub/irs-pdf/p925.pdf

Please be aware in deducting the losses, the At Risk rules as well as passive activity loss rules.

[aclaz]

How are unallowed losses mentioned in the message entered into TurboTax?

[PatriciaV]

Passive Losses for current and prior years are shown on Form 8582.

[aclaz965]

I went to Form 8582, it won't let me enter any data for line 2c