Sort of similar problem...
Working on a 2021 Trust tax return (Form 1041). I am getting an error message with my K-1 entry wks-Partnership as follows...
QBI passive op loss. Please enter or adjust information in this section. The sum of QBI Operating Loss carryovers from all years should be equal to the total amount as shown in Passive Loss Carryovers to 2021 Worksheet.
When I right click on the box highlighted (which is 2018 operating loss line) and click on data source I get the following dialogue box...
K-1 Entry Wks-Partnerships (Third Letter L, LLC) : QBI Passive Op Loss
Prior Year Suspended Loss Carryovers
If there is a suspended passive loss carryover from prior year and the transfer option was used, the program uses information from the prior year Carryforwards section to populate this table. These results are used in computations to determine the amount of passive loss freed for QBI purposes.
If you did NOT use the transfer option and have manually entered a total amount in the Passive Loss Carryovers Smart Worksheet on this activity, you must enter the amount attributable to each prior tax year here to correctly calculate freed passive losses for QBI purposes.
Note that for QBI purposes, passive loss carryovers incurred prior to the 2018 tax year are not allowed. See government instructions for more information.
How do I correct this?? The loss which would balance to the total carryforward number is from before 2018 and according to the bold statement above QBI losses prior to 2018 are not allowed.
Thank you for your help!
