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JB_Tax
Returning Member

K-1 passive loss workbook calculation allowed loss from each year vs only year.

I am reporting K-1 income of $174 this year. Turbo Tax is applying $150 of passive losses from prior years against this income. However, the k-1 Smart Workbook calculation is taking $150 from each of the last four years 2020, 2021, 2022, & 2023 ($600 total) versus just using $150 from 2020). I don't believe this loss can be applied in any other situation besides K-1 related income.  See below, $150 from prior years and $24 from current years for a total of $174. But you can see the reduction happening in each of the years. Note there is no QBI to offset. 

 

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