Can anyone explain why my rental losses from my K-1 won’t show up as a loss this year. I am an active partner and it showed last year.

[MinhT]

Unless you are considered as a real estate professional, passive losses are not deductible when your adjusted gross income is over $150,000. They are carried over to future years.

You are considered to be a real estate professional (i.e., in a real property trade or business) if:

1) more than one-half of the personal services you provided during the year were performed in a real property trade or business in which you materially participated; AND

2) the number of hours in which you materially participated in this real property trade or business was more than 750 hours; AND

3) you must materially participate in each rental real estate activity unless you filed an election to group all rental real estate activities as one (and materially participate in that activity).

A "real property trade or business" means any real property development, redevelopment, construction, reconstruction, acquisition, conversion, or rental operation, management, leasing, or brokerage trade or business.

[Jcharkins1]

My adjusted gross income is well under $150K.  My K-1 real estate loss is not being deducted from my gross income.

[Mike9241]

if it's passive look at form 8582 where the RE loss on the k-1 should appear. the form is used to determine any allowable passive loss.  Also if your filing status is Married Filing Separareltly that $150K becomes $75K. However, their is an exception if the k-1 is from a publically traded partnership (PTP - Part I box D checked). It has special tax treatment in that while passive the normal rules PAL loss rules don't apply. That loss can only be deducted agaimst passive income from the same partnership. Irt will not flow to form 8582.  It is suspended until there's passive income from the same partnership to offset it or you sell you entire interest.