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Brandon Beaver
New Member

Passive Loss K1 Real estate with S Corp combination

I should be able to take a K1 loss from the real estate entity I have when combining this Partnership with my S Corp company. I am not certain how to enter this correctly in Turbo tax so the K1 loss is not considered passive and suspended.

Relying on Reg 1.469-4(c). This is the attachment I put together to include in the return. Any help on how to enter this combination of grouping into Turbo tax?

My S Corp has a long term lease with my newly created Real Estate Partnership. 

 

 

Statement filed in accordance with REV. Proc. 2010-13

Election to group activities pursuant to Reg. 1.469-4(c)

The taxpayer hereby reports the following grouping activity in accordance with Rev. Proc. 2010-13

New Grouping:

The following activities have been grouped as a single activity for the first time during the calendar year.

Name of entity: 

Schedule: S Corporation

Address: 

Fed ID# XXX

Name of entity: 

Schedule: Partnership

Address: 

Fed ID# XXX

Hereby declares that any and all grouping created above constitute and appropriate economic unit for

Measurement of gain or loss for purposes of IRS Sec. 469

 

Thanks Brandon 

2 Replies
martinmarks
Level 10

Passive Loss K1 Real estate with S Corp combination

Not sure but I think you have to enter that into the Business program manually.....Turbotax doesn't support most grouping combos. Probably have to print and mail the return also.

Mike9241
Level 15

Passive Loss K1 Real estate with S Corp combination

the only way to make it work in Turbotax is on the partnership k-1 to list the loss on line 1 (not line 2)

indicate the type as "business" (not rental real estate) and check the box "materially participates" this should carry the loss to schedule e page 2 the non-passive loss column. since LP's don't qualify you must check you are a General Partner.

 

 

hopefully your partnership is not a limited partnership because the activities of an LP can't be grouped with other activities in most instances. REG 1.469-4(d)(3)

 

 

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