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New Member

If the K1 I received shows a loss, do I need to enter it in this years tax return or wait until I sell the units or get positive activity in a future year?

The K1 shows the loss reducing my cost basis.  Per the K1 instructions if the net result is positive the info should be reported on your 1040:  if negative the loss will be suspended until there are positive returns or you sell the units.  So it's confusing whether I should enter it this year in turbo tax.

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Level 6

If the K1 I received shows a loss, do I need to enter it in this years tax return or wait until I sell the units or get positive activity in a future year?

Yes, you should enter the K-1 on your tax return even if it shows a loss.

It is a passive loss. The instructions mean that you are not allowed to deduct this loss from your other income. They are suspended to be used when you have a passive profit or when you sell the units. You cannot use the loss in the future if you do not report it this year.

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New Member

If the K1 I received shows a loss, do I need to enter it in this years tax return or wait until I sell the units or get positive activity in a future year?

Why won't turbo tax allow me to file this loss with a IRA I2 block checked?
Highlighted
Level 6

If the K1 I received shows a loss, do I need to enter it in this years tax return or wait until I sell the units or get positive activity in a future year?

Yes, you should enter the K-1 on your tax return even if it shows a loss.

It is a passive loss. The instructions mean that you are not allowed to deduct this loss from your other income. They are suspended to be used when you have a passive profit or when you sell the units. You cannot use the loss in the future if you do not report it this year.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Highlighted
New Member

If the K1 I received shows a loss, do I need to enter it in this years tax return or wait until I sell the units or get positive activity in a future year?

Why won't turbo tax allow me to file this loss with a IRA I2 block checked? Is there a way to override?
Highlighted
New Member

If the K1 I received shows a loss, do I need to enter it in this years tax return or wait until I sell the units or get positive activity in a future year?

I have a similar situation, I was given a k-1 for a loss/deduction, on preparation/sale of a small amount of inheritance from property sold with a note that says "for tax year ending may 31st 2019" and told to file with 2019 tax, but on closer inspection it's a 2018 k-1 form. Do I file this with 2018 or 2019, and since I don't report the inheritance as income, does it matter anyways since you said it can't reduce other income..