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Level 2

Solved

Tax loss on K-1 form

1 reply
45 views

I am using TurboTax and have reported a net rental real estate loss of $8,689 on my K-1 form. However, I noticed that this loss did not reduce my tax liability. Is this expected? If not, can I kindly ask if someone could help me address this issue in TurboTax?

TurboTax Home & Biz Windows

Level 15

Expert Reviewed

If the loss was from a publicly traded partnership, the loss is suspended until there are enough profits in future years from the partnership to offset the loss or until you dispose of the partnership interest. If it's a private investment look at Form 8582 to see why the loss was suspended. By law, rental real estate is a passive activity (IRC 469). Therefore, deductibility of the loss is subject to restrictions.

Mike9241

Answer

Level 15

Expert Reviewed

If the loss was from a publicly traded partnership, the loss is suspended until there are enough profits in future years from the partnership to offset the loss or until you dispose of the partnership interest. If it's a private investment look at Form 8582 to see why the loss was suspended. By law, rental real estate is a passive activity (IRC 469). Therefore, deductibility of the loss is subject to restrictions.

Mike9241