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ppt
Level 3

Question about form K1 line 19 item A and carrying over losses

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-... (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.

 

Screen Shot 2020-06-11 at 7.56.41 PM.png

 

Can someone help me understand this more?

 

Thank you.

1 Best answer

Accepted Solutions

Question about form K1 line 19 item A and carrying over losses

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.  

View solution in original post

2 Replies
ppt
Level 3

Question about form K1 line 19 item A and carrying over losses

Any help here please?

Question about form K1 line 19 item A and carrying over losses

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.  

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