How to defer applying a K-1 income loss towards Income

[louvaljoey]

I have a Schedule K-1 from an LLC that I am a part of. This LLC is in the business of home renovations. The K-1 shows a loss.  It shows a loss because it purchased a home and that was applied to Cost of Goods.  The home will be renovated in a future year.  I do not wish to have this K-1 loss applied to my 1040 Income this year, but in the future year that the home will be renovated and sold.

How in Turbo Tax do I indicate that this K-1 loss is not to be applied to my income in the current year?

[Mike9241]

The problem seems to be that the partnership return was prepared incorrectly. The property hasn't been sold.  Thus, its cost and probably most other expenses regarding the property should be reflected in the ending inventory.  I think it is crucial that a corrected return and K-1s be filed. Failure could prompt an IRS audit. You can't ignore what is on the K-1. The IRS sure wouldn't.  A tax pro should probably be consulted as to what can be expensed and what must be included in ending inventory costs.