Question on how to fill out form 8582

[DaleF1]

How do I submit a question directly to TurboTax Tax professionals? Is there a Chat, email, or phone number that can be used to communicate directly with TurboTax proffessionals who know how to correctly complete Form 8582. Particularly part V.

[Cynthiad66]

Yes. You can access TurboTax Live Full Service  or Turbo Tax Assisted by clicking the link.

You can also submit your question here for Tax Experts to assist.  However, you will need to describe your questions in great detail.

Form 8582 is used by noncorporate taxpayers to figure the amount of any passive activity loss (PAL) for the current tax year and to report the application of prior year unallowed PALs. 

A PAL occurs when total losses (including prior year unallowed losses) from all your passive activities exceed the total income from all your passive activities.

[DaleF1]

Thank you....I did submit a question to the community titled "Form 8582 Part V" but no one replied. My question/concern is that I have a K-1 with an entry on line 10 for a capital gain. This is treated as a capital gain as it flowed on to Schedule D. But it also went in to Form 8582 as net income on line 2a of part I causing line 3 to be positive which in turn causes all my other K-1 passive losses that are Unallowed to now be Allowed passive losses. I don't think this is correct and will cause a huge red flag with the IRS. I don't think the capital gain should go into form 8582 to affect passive losses since the capital gain is not passive. Is this a bug with Turbotax?

[AliciaP1]

If your ownership in the business that sent you the Schedule K-1 is passive, then the capital gain it passed to you is considered passive income and is reflected correctly.

See Passive Activities to ensure you are reporting your K-1 activities correctly.

@DaleF1 

[DaleF1]

Thanks...The K-1 is for a limited partnership that I did not actively participate. Why does that one K-1 with the capital gain now make all my other K-1 passive Unallowed losses not allowed? It makes a huge difference on my refund. Another community member posted the same question about his K-1 capital gain. He ended up taking his taxes to a licensed CPA and that CPA did not include the capital gain on his K-1 as passive income on form 8582. It only went to Schedule D. I'm not sure Turbotax is handling this K-1 gain on line 10 correctly.

Thank you

[DaleF1]

that should have been "losses now allowed" instead of "losses not allowed"