k-1 Section 1231 Loss

drshook · ‎April 15, 2021

I am filing Schedule K-1 (Form 1065) and my Net Rental Real Estate Income is less than my 1231 loss by $2,714.00. However, in TurboTax Deluxe it will only input the loss to offset my income, and will not show a negative amount.

Does anyone know what I need to do to be able to take full advantage of the loss?

Thank you in advance for your help.

tagteam · ‎April 15, 2021

Which version of TurboTax are you using?

If you are using a desktop version, check to see if you have Form 8582 in Forms Mode.

You are probably running into the passive activity loss limitation.

drshook · ‎April 15, 2021

I am using Turbotax Deluxe 2020.

tagteam · ‎April 15, 2021

Online or desktop?

Note, also, that you might be running into the passive loss limitation mentioned earlier. Generally, your rental income can be offset by passive losses, but any excess losses cannot be used to offset other income unless there is active participation and you are not subject to the phaseout for the special ($25,000) allowance.

drshook · ‎April 15, 2021

Sorry about that. It is the desktop version.

tagteam · ‎April 15, 2021

Enter Forms Mode and check Form 8582.

k-1 Section 1231 Loss

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm