Can K1 unallowed passive losses offset captial gains from stock sale?

[Mike9241]

normally no.  however, if what you had was a master limiter partnership or public;y traded partnership (the box would be checked on the k-1) the complete disposition of the position allows the passive loss related to it to be realized

[ynot_now]

Thanks for the reply. If the LLC was dissolved in 2012, should I have taken the loss in 2013?

[DavidD66]

If the LLC was dissolved in 2012, you should have taken the loss on your 2012 tax return.

[ynot_now]

If I did not take it then, can I still take it now or must I file an amended 2012?

[ThomasM125]

You cannot deduct the loss now, it had to be deducted in the first year allowed.

You won't be able to claim the loss, as you can only amend a tax return to receive a refund within three years from the due date of the tax return. So, the return was too long ago to be amended for a refund.

@ynot_now

[ynot_now]

Also, my LLC was managed by a Inc which declared a 1244 stock loss. Does this change anything?

[GeorgeM777]

No, passive losses cannot offset capital gains from the sale of stock.  Capital gains and dividend income are not considered passive activity income. 

No, the fact that you had a Section 1244 stock loss does not change things as your passive activity loss is separate from your Section 1244 stock loss.   Under Section 1244, an individual stockholder of a corporation can claim an ordinary (rather than capital) loss of up to $50,000 per year (or $100,000 for on a joint return) from the sale or worthlessness of “Section 1244 stock.”  Section 1244 ordinary losses are not first offset against capital gains.  

@ynot_now

[ynot_now]

Is there a time limit to claim the loss?

[DaveF1006]

Passive Activity Losses that are suspended are carried forward indefinitely until future years, when you either have passive income or sell a property at a gain.

@ynot_now

[Nrouhani1]

I NEED TO CARRY FORWARD ALL MY 2020 PASSIVE AND NON PASSIVE LOS THAT IS CARRIED FORWARD TO 2021 AND NEED HELP TO KNOW HOW TO TRANSFER THOSE INFORMATION TO MY 2021 TAX RETURN. IS THERE A TELEPHONE NO I CAN CALL TO GET GUIDANCE? IS THERE A TELEPHONE NUMBER FOR DIRECT SUPPORT? IF NOT COULD YOU TELL ME WHAT INFORMATION AND HOW I CAN TRANSFER THEM TO MY TURBO TAX FOR 2021 SO I CAN DO MY TAX RETURN

[PatriciaV]

@Nrouhani1

Carryover losses are entered under the topic where the losses were generated (typically Schedules C, E, or K-1). Look for questions under the business/property profiles of those sections that ask if you have losses to carry over from a prior year.

If you would like to talk to a support agent, use this link: https://support.turbotax.intuit.com/contact/