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dzemach63
Level 2

I have a K-1 with losses in Box 1

Looking to see if there is a fix to get both losses (which are not aggregated) counted on the tax return.
1 Best answer

Accepted Solutions
AmeliesUncle
Level 13

I have a K-1 with losses in Box 1


@dzemach63 wrote:

in box 2.  


 

If the K-1 from the Corporation and an amount in Box 2, that is a Passive Loss.  In most cases, Passive Losses can only be used against Passive Income.  The unused amount is carried forward to next year on Form 8582.

 

I suspect that is what you are seeing.  The Passive Loss is not being allowed and it is being carried forward.

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5 Replies
ToddL99
Expert Alumni

I have a K-1 with losses in Box 1

What do you mean by "both losses"? Do you have two K-1s? Where are these two losses reported?

dzemach63
Level 2

I have a K-1 with losses in Box 1

My S Corp is a partner in a partnership and receives a k-1 with income (loss) in box 2. The k-1 issued from the S Corp to myself shows figures in box 1 and the same figure shown on the partnership k-1 in box 2. Therefore, the singular k-1 reported on my personal tax return has two income lines on it. Only one is impacting my personal tax return. 

DaveF1006
Expert Alumni

I have a K-1 with losses in Box 1

Maybe you should clear up some details for me. Your S-CORP receives a K-1 from the partnership. If that K-1 is in the name of the S-CORP, then that is reported in a separate Business return as income received by the S-CORP.  At this point, a K-1 gets issued in your name for you to report in your personal return. You need to purchase Turbo Tax Business product to report the income from the partnership to your S-CORP.  

 

Now, that amount reported gets passed down to you and reported as K-1 income in your personal return. You would just report what is included in Box1.  

 

I hope this answers your question.  Both K-1's need to be reported as two separate events-one in a business return and one in your personal return. 

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dzemach63
Level 2

I have a K-1 with losses in Box 1

Thanks for replying - I have already done as you describe (purchase TurboTax business, create a partnership filing, receive partnership k-1 at S-Corp, receive personal K-1 from S-Corp). TurboTax business spits out the Scorp k-1 with losses in boxes 1 and 2. If I only report box 1, is that because the loss basis reported in box 2 stays at the S-Corp level and doesn’t flow through to personal?

AmeliesUncle
Level 13

I have a K-1 with losses in Box 1


@dzemach63 wrote:

in box 2.  


 

If the K-1 from the Corporation and an amount in Box 2, that is a Passive Loss.  In most cases, Passive Losses can only be used against Passive Income.  The unused amount is carried forward to next year on Form 8582.

 

I suspect that is what you are seeing.  The Passive Loss is not being allowed and it is being carried forward.

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