K1 with passive real estate losses

[j_pgoode]

Hi,

I have a K1 for a real estate partnership and Turbotax doesn't appear to be able to handle it correctly from what I can tell.  Here's my scenario:

1) Box 2 shows a loss (call it -15,000)

2) Box 5 shows a small gain on interest (call it 2,000)

3) Statement A shows 4 pass-thru entities which comprise the losses, along with some values for UBIA of qualified property, W-2 wages, and other deductions

So my three questions are:

1) no-matter what I enter, it doesn't seem that the loss on box 2 goes anywhere.  It's my understanding its supposed to go the Schedule E.  Is there a bug or am I doing something wrong?

2) for the statement A items (pass-thru entities), it's my understanding I need to create multiple K1s in turbotax to handle this from other postings.  But, I don't see how I can easily do this as I would have to have values for all the K1 form items per entity, which I don't have.  Is there any reason I can't just sum all the items for the pass thru entities and report as one thing?  I would assume that would have the same net effect.

3) Even if I do input the Statement A items (like with my first question), it doesn't seem that the data results in any effect on my taxes.

Thank you in advance for any help you can provide.

[Mike9241]

real estate losses are subject to the passive activity rules. generally, PAL losses are only deductible against PAL income.  Two exceptions a real estate professional is not subject to these PAL rules second if not a REP, then if you actively participate your loss would be deductible but only if your modified adjusted gross income is unner $150.,00 (1/2 this if MFS) see form 8582

[j_pgoode]

thank you.  I'll have to go look at form 8582 to see what is being done.  Thank!

[j_pgoode]

ok, I re-read the response provided to my question.  So since I'm not actively involved in the LP, the passive losses should offset my passive gains I would think (in this case, interest income on the K1).  Turbotax is only including the interest income on my overall taxable income and doing nothing with the loss from what I can tell.

Any ideas?