Hello -
This is little bit related to the thread that was solved (by @DavidS127 ) earlier --> https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-need-help-with-k1-and-it-s-199a-with-turbotax/01/1630201#M52659 (looking at this thread first will give a better context if below description is not clear enough)
I have a K1 form where item number 19 reports a positive distribution with item code A. I have few questions related to that if someone can help me understand. I am really new to this K1 form and never had it before.
1. I thought I would be paying taxes on that distribution because I got those checks for distributions. Shouldn't I be paying taxes on it? Why I don't see this flow through 1040 income somewhere?
2. Initially, I though that is because either a) in K1, item 2, "net rental real estate income (loss)" is negative figure lets say -50 (loss) or b) 199A shows "Rental income (loss)" is negative figure lets say -70 (loss) with UBIA also reported. I read somewhere that, I will be applying these loses towards income I got from the partnership (K1, item 19, code A figure ??) and rest will carry over to next year. But, I see that in turbo tax, both losses carried forward to 2020 as it is (-70 and -50) as shown in the section below.
Can someone help me understand this more?
Thank you.
1. I thought I would be paying taxes on that distribution because I got those checks for distributions. Shouldn't I be paying taxes on it? Why I don't see this flow through 1040 income somewhere? It is not income ... it effects your basis in the investment only.
2. Initially, I though that is because either a) in K1, item 2, "net rental real estate income (loss)" is negative figure lets say -50 (loss) or b) 199A shows "Rental income (loss)" is negative figure lets say -70 (loss) with UBIA also reported. I read somewhere that, I will be applying these loses towards income I got from the partnership (K1, item 19, code A figure ??) and rest will carry over to next year. But, I see that in turbo tax, both losses carried forward to 2020 as it is (-70 and -50) as shown in the section below.
The unallowed losses are correctly being carried forward since this is a passive activity.
1. I thought I would be paying taxes on that distribution because I got those checks for distributions. Shouldn't I be paying taxes on it? Why I don't see this flow through 1040 income somewhere? It is not income ... it effects your basis in the investment only.
2. Initially, I though that is because either a) in K1, item 2, "net rental real estate income (loss)" is negative figure lets say -50 (loss) or b) 199A shows "Rental income (loss)" is negative figure lets say -70 (loss) with UBIA also reported. I read somewhere that, I will be applying these loses towards income I got from the partnership (K1, item 19, code A figure ??) and rest will carry over to next year. But, I see that in turbo tax, both losses carried forward to 2020 as it is (-70 and -50) as shown in the section below.
The unallowed losses are correctly being carried forward since this is a passive activity.