For the 2017 tax year, I had received a K-1 that was marked "final". In TT, I processed it by saying that the disposition was NOT via a sale. (By way of background, I didn't sell my ownership. The K-1 issuer closed one LLC and opened a new LLC and transferred all assets over and started issuing me a K-1 from the new LLC in 2018.) TT produced a 2017 return which showed unallowed passive losses on Form 8582, Worksheet 3 for the old LLC.
Now, when doing my 2018 taxes, I haven't received a K-1 from the old LLC anymore (but I have received one from the new LLC). How do I inform TT that I have unallowed passive losses (from the old LLC) that need to be carried over from 2017 into 2018?
More generally, when an issuer issues a final K-1 and my disposition isn't via a sale -- but it's because the issuer has wound down the business -- and I have unallowed passive losses to be carried forward, does the tax law allow me to actually carry forward these losses and use them to offset future (passive?) income from other sources? If so, how would I recategorize these passive losses? It doesn't seem as though Form 8582 would be the place to manage this, unless I continued to create a fictitious K-1 that was totally blank except for the unallowed passive loss carryover. Otherwise, perhaps the place to handle it would be on Schedule D as a capital loss carryover ...
