PatriciaV
Expert Alumni

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.

 

@sho20bhit 

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