Problem with final K-1 and Carryover Passive loss.
I had a final K-1 with entries in Line 1 Ordinary Income (large positive) and Line 2 Net Rental income (medium loss). Furthermore this was a final K-1 (disposed of not by sale). TT Premier required Line 1 (and I assume other lines) be entered in one K-1 and the Line 2 Loss in a separate K-1. The problem is TT did not treat the negative Line 2 as a final K-1 and allocated some of the carryover passive loss to it. This is how I filed it.
I'm in the process of a 1040X. If I combined Line 1 and Line 2 and report the net positive on Line 1 only, it calculates the passive carryovers correctly only to other K-1s but also calculates a more beneficial QBI. Is this correct to combine K-1 Line 1 and Line 2 and report it on Line 1 for a final K-1 as a workaround?
