I had a business loss registered on K1 of my 1040 last year. Can I carry over it to offset this year's income on K1?

nayilus · ‎June 4, 2019

IreneS · ‎June 4, 2019

UPDATED FOR TAX YEAR 2019

No - If you materially participated in the business, the loss should have been taken on your 2019 return.

However, if you did not materially participate in the business, the loss is considered passive and will be carried over to apply to any passive income. The loss would have been carried over on Form 8582.

[Edited | 4/13/2020 | 8:23 am PDT]

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View solution in original post

IreneS · ‎June 4, 2019

UPDATED FOR TAX YEAR 2019

No - If you materially participated in the business, the loss should have been taken on your 2019 return.

However, if you did not materially participate in the business, the loss is considered passive and will be carried over to apply to any passive income. The loss would have been carried over on Form 8582.

[Edited | 4/13/2020 | 8:23 am PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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I had a business loss registered on K1 of my 1040 last year. Can I carry over it to offset this year's income on K1?