I received a K-1 which showed losses and distributions. I entered that information under K-1, but none of that information appears on Schedule E. Can that be correct?

[Rick19744]

Are you passive or active?

[grandalf]

passive

[Rick19744 · Accepted solution]

TT is handling this correctly.

• Passive losses are only allowed to the extent that you have passive income. 
• Unless you have passive income, then your passive losses will be suspended and carried forward indefinitely.
• With respect to your distributions, you need to make sure you maintain a tax basis schedule.  You will need this when you dispose of this investment.  
• Additionally, if distributions exceed your tax basis, then you will have to recognize capital gain to the extent of any "negative" tax basis; essentially getting you back to zero.

[grandalf]

Perfect. Many thanks.