BEA999
Returning Member

TURBO TAX BUSINESS - SIMPLE TRUST - 1041 - K1 LINE 14H

For all my prior years 1041's - The "PASSIVE LOSS" accumulated at the trust level and did not "pass thru" to me  (which I am fine with it staying there). But for this year (tax year 2020) the k1 produced has all boxes empty (just like prior years) but showed the total loss in box 14  H  $2,027. It didn't make sense that it was a "positive" number but after redoing/reviewing the tax return several times I continued ON with my personal tax return 1040, I entered the 1041 K1 box 14H just as it was shown but when I reviewed the 1040 I see that it  added the (loss) amount to form 8960 to my investment income (increasing my "total investment income") and calculated the tax I owe on that loss.   This doesn't make sense to me. Can somebody explain this to me?. I was happier with a "completely"  blank K1!!!

martinmarks
Level 9

After you file

You must have made a distribution or else the software is screwed up. Line 14H is an 8960 adjustment that increases your NIIT liability. 

BEA999
Returning Member

After you file

Thank you for replying. There was no distribution or anything different from prior years. Just plain old real estate rental losses.
I’ll call turbo tax tomorrow. thanks again