I have owned a Master Limited Partnership for a few years. I've bought more units over the years, but I have never sold.
From the start of my ownership the K-1 has reported Business Losses in Box 1.
In 2022 the K-1 for this MLP for the first time has reported Business Income in Box 1.
How do I calculate the amount of accumulated Business Losses from previous year's K-1 Box 1 entries to determine the Box 1 Business Losses carryforward for 2022? The total accumulated Box 1 losses for this MLP are greater than the 2022 Box 1 Business Income, so I think I should be able to use historical Box 1 Business Losses to offset all of 2022 Box 1 Business Income. It's all the same MLP.
There is a section in the MLP K-1 questionnaire where it asks you if you have Passive Activity Losses carried over from last year. I checked Yes. The next page is labelled Report Carryovers - Regular Tax (see below). Do I enter my Passive Activity Losses in one of the boxes, or both of the boxes (see below)? And how do I use the historical K-1's to calculate the total Passive Activity Loss number to enter? Do I just add up all the losses from all the Box 1's? They're all negative up until 2022 which is positive.
