I have left the empty for the filed for Code Z - Section 199A Information and now it is asking for "Describe the Partnership". I have not selected any option but it is asking me to calculate at-risk amount via simplified or detailed method. I did LLC Partnership investment of 25k in Sept 2021.
Options:
I am required to pay supplemental business expense.....
I have passive activity losses......
All of my investment in this activity is at risk.
I have at-risk losses.......
I personally paid health insurance........
===================================
"Capital Contributed During 2021 $25000
Current Year Net Income (Loss) $-20913
Ending Capital Account $4087 "
I chose Simplified Method:
Enter your adjusted basis in LLC Partnership
Adjusted Basis on January 1, 2021 (what value to put in the field from K1)
I am not sure if I should put $4087 or $25000 initial investment
If put $4087 then it is saying dedutible loss may be as much as that amount for the current year and the nondeductible amount required to be carried forward to next year is $16826
Can you please help.
