1. I thought I would be paying taxes on that distribution because I got those checks for distributions. Shouldn't I be paying taxes on it? Why I don't see this flow through 1040 income somewhere? It is not income ... it effects your basis in the investment only.
2. Initially, I though that is because either a) in K1, item 2, "net rental real estate income (loss)" is negative figure lets say -50 (loss) or b) 199A shows "Rental income (loss)" is negative figure lets say -70 (loss) with UBIA also reported. I read somewhere that, I will be applying these loses towards income I got from the partnership (K1, item 19, code A figure ??) and rest will carry over to next year. But, I see that in turbo tax, both losses carried forward to 2020 as it is (-70 and -50) as shown in the section below.
The unallowed losses are correctly being carried forward since this is a passive activity.
