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Business & farm
No, Box 2a on the Report Carryovers - Regular Tax page is used to report Ordinary Income from Recoveries. This carryover is not related to Schedule K-1 Line 2 Net Rental Real Estate Income (loss). You can confirm this on the K-1 Worksheet, Section A Row 2.
You should report passive loss carryovers from rental activities on the K-1 that reports income or loss from Line 2. This could be the only K-1 copy for this investment or you may have set up another K-1 for the Box 2 activity. And yes, carryovers are cumulative when entered for Section A of the K-1 worksheet.
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‎April 2, 2025
8:20 AM