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Level 2
posted Mar 14, 2025 5:56:00 PM

is all income reported on line 11.a. from k-1 automatically nonpassive?

I have income from line 11.a. of K-1. instructions say that it is Passive. in turbo tax, there are only 2 others on "sch k-1 additional" for other, lines 4 and 5. putting on line 4 places it on sch E as nonpassive (wrong). using line 5, TT says I have to put it on a form. the only way to get it on Sch E and allow my passive losses to offset, is to override. if I do this, I have to override in multiple places and then will be unable to efile. 

 

is there a TT solution other than not reporting this on line 11.a. of the K-1? if it put on line 1 of the K-1, it is reported as passive and the program uses my passive losses to offset. 

0 1 2654
1 Replies
Expert Alumni
Mar 19, 2025 1:34:19 PM

Schedule K-1 Box 11 Code A is used for portfolio income (loss). The default is for this amount to be reported as nonpassive income. If you need this to be passive income, your best option is to add the amount from Box 11A to Box 1 Ordinary Income. With this option, leave Box 11 Code A blank.