Business & farm
What kind of K-1 are you reporting? Are you reporting a partnership, a sub S corporation, or a trust or estate? Please clarify.
Are you reporting a publicly traded partnership with a loss?
Publicly traded partnership losses have minimal use for the unit holder.
- If a certain PTP has a loss, that loss can only offset earnings in the future from that same publicly traded partnership.
- This is unlike non-PTP passive actions, in which allocated losses can go toward offsetting earnings for other passive actions.
For instance, PTP A reports $5,000 loss and PTP B reports $5,000 gain. You are not allowed to net the gain against the loss on the 2022 Federal 1040 tax return.
