Hello DavidS127,
I did not find a Form 6198 associated with my return and I don't remember ever "disallowing" any of my losses last year. Since my question yesterday, I believe I've figured out what you are talking about. Please confirm if what I'm writing/describing is true:
When entering the information for a K-1 received from a publicly traded partnership (PTP) there comes a point where it asks to "Describe the Partnership". There are a number of boxes below that you must check if they apply. For example, I have always checked the box #2 and #3, which state "I have passive activity losses carried over from the last year" and "all of my investment in this activity is at-risk". There is another box that I have not checked in the past, but I believe I should have and is my main question:
The box says "I have at-risk losses carrying over from 2018". If this box is selected, TurboTax will launch the "K-1 At Risk Limitation Worksheet". In this worksheet, there are 4 columns of information:
1. Total current income or loss (i.e. for this year)
2. Carryover Prior year loss - this is the column they are asking you to complete
3. Allowed Income or Loss - calculated based on columns 1 and 2
4. Disallowed Income or Loss - calculated based on columns 1 and 2
Unlike most things that TurboTax will keep track of - like the passive losses - it seems they want you to manually enter these values in here even though you've already stated they are "at-risk"?
My questions based on the above are:
1. Am I understanding this correctly? Do I check that box and then manually enter the At-Risk losses from a previous year? Presumably, this would be 100% of the value that is in column #1.
2. Presumably, the answer to question #1 is "yes", then must I go back to whenever I purchased these PTPs and redo my taxes for every year up until today?
3. What forms should I get from TurboTax as a record of these additional "At risk losses"?
4. Where/how does Form 6198 come into play?
Thanks,
47acre94
