pabolger
Returning Member

Business & farm

I have an identical situation.  Thank you for your clear description.
You mentioned that the negative number (potentially) enters into another tax calculation.   I live in California.  The positive amount is included in both Federal and California taxable income,  but I believe that the negative on Line 14 of the K1 (code H) should enter the California CA Adjustment form, and offset the income.   Can anyone confirm this is true?