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Cat
New Member

Husband and wife transferred rental real estate into an LLC. How do you manually enter suspended losses on Form 1065?

None of the Q&As provided help answer this question.  On 1/1/2017,Husband and Wife transferred rental real estate with suspended losses (shown on Schedule E of Form 1040) to an LLC owned equally by the Husband and Wife.  H&W live in a non-community property state.  How do we manually enter the suspended losses on Form 1065?

1 Reply
PatriciaV
Level 7

Husband and wife transferred rental real estate into an LLC. How do you manually enter suspended losses on Form 1065?

Unfortunately, suspended losses do not transfer with the property to the partnership (LLC). These losses remain with the contributing partner and are added to your basis in the partnership interest. You may use the suspended losses only if or when the partnership is dissolved or sold.

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