JamesG1
Expert Alumni

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If ordinary income from the entity is positive (K-1 1120-S line 1), the income is reported on line 3a in Part I.

 

If ordinary income from the entity is negative (K-1 1120-S line 1), the loss is reported on line 35 in Part III.

 

 

 

What deduction were you reporting with the gain on K-1 1120-S line 1?

 

@TotalTaxNoob 

 

 

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