PatriciaV
Expert Alumni

Investors & landlords

The passive loss from Schedule K-1 Box 2 should appear on Schedule E page 2 Line 28 column (g), which flows to Schedule 1 (Form 1040) Line 5. The interest income from Box 5 should appear on Schedule B Part I Line 1, which flows to Form 1040 Line 2(b).

 

How the passive loss is handled depends on other passive income/losses (including carryovers) that are also reported on your return. Schedule E page 1 should allow you to trace the flow of passive income from various sources to Form 1040.

 

You may combine Statement A for pass-through entities owned by the Schedule K-1 investment. Note that the QBI income from these sources may or may not be used on your return. Review Form 8995 for the calculation of Qualified Business Income (if any) included on your return.

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