Rules regarding rental loss carryforward on Schedule K-1

[jdoeslash]

Hello,

Apologies, I have a real beginner question here.

We opened up a llc last year and renovated a rental property. We had big losses which we reported on line 21 of our Schedule K-1.  What expenses can I deduct these against this year and going forward?

[ColeenD3]

The best thing to look at is the actual Schedule E since it lists the various categories. You can also take miscellaneous expenses such as trash hauling, alarm systems, lawn care, and depreciation of landscaping improvements.

Schedule E

[AmeliesUncle]

Schedule K-1 ... that means you reported the rental from the Multi-member LLC on a Partnership return (Form 1065), right?

Was the rental available to be rented last year?

Line 21???  Line 21 of what?

Did you provide "services" (such as maid service or meals) to the rental tenants?

[jdoeslash]

Yes, correct. I reported the rental from the Multi-member LLC on a Partnership return (Form 1065)

Yes, it was rented last year.

line 21 of schedule k-1.

No services besides gardener.

thanks!

[AmeliesUncle]

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@jdoeslash wrote:

line 21 of schedule k-1.

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You may want to double check that.  Line 21 of the K-1 would not report the income.

https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf

Did your last year's tax return have Form 8582 showing that the losses were not allowed due to the Passive Loss rules?

[jdoeslash]

Thank you for responding! My form has a different template for some reason. I guess the equivalent would be line 2 of the document you sent?

[AmeliesUncle]

Yes, real estate rental income (that does NOT provide "services" to the tenants) would be in Box 2 of the K-1.