Based on your follow-up responses:
- You have invested in a PTP and there are special and complicated rules on how these work. PTP's are each tracked separately from other passive activities and losses from a PTP can only be used to offset income from that specific PTP; and losses cannot go below zero.
- Your K-1 should have a statement as to Box 11 code A. Most likely you should indicate "Other portfolio income". While your $515 could be a loss, I am assuming it is income.
- Your K-1 should have a statement as to Box 13 code W as well as this amount is considered some type of "other deduction".
- You should be tracking your basis in this investment and your K-1 should be reflecting a tax capital basis. If your end of the year figure in Section L is positive, then you are able to indicate that you are at-risk.
- If your activity on the K-1 generates a loss, then this loss will be suspended and carried over to next year. While we don't have all the facts, nor can we see the K-1, the amounts from the K-1 activity can be reflected in various places on your tax return.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
