The loss is related to a publically traded partnership (PTP) and, I suspect that the loss is not realized on the 2020 Federal 1040 tax return nor the state tax return.
In the TurboTax Print Center, you should be able to view a statement Passive Activity Adjustment to Income or Loss showing the loss limited and suspended for the current year. The loss will be a carryforward to 2021 unless you have recorded income earned in a previous year against that same investment.
This is what is meant by the statement:
Passive losses for Publicly Traded Partnerships are:
- limited to income from the same PTP,
- excluded from being taken against other types of passive losses,
- suspended and will carry forward until the PTP has income to offset the loss.
If the partner's entire interest in the PTP is completely disposed of in a fully taxable disposition, any unused losses are allowed in full in the year of disposition.
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