I have a small ownership in a passive partnership, and receive a K-1 (Form 1065) for the last three years since I invested. Unfortunately, the partnership has had losses each year. I do NOT have other passive investments, and therefore don't have any passive income to use to offset these losses. They have been carried forward each year. I am now doing my 2024 tax return (I filed for an extension), and TT (desktop) is taking the accumulated Loss against my current taxable income. I have answered all the questions to indicate the investment is Passive, and in the previous years the Loss has been carried forward and not recognized. I don't think I'm supposed to be able to recognize this loss this year, but I don't see what I'm doing wrong in the TT input. Is there a glitch in the TT program? Has anyone run into this? Any ideas?
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please review form 8582, because that's the form passive losses are carried to and the calculation of allowed/disallowed is done. if you find an error you can report back on the specifics of what's happening, and we can then provide further info.
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