Reporting passive ordinary business loss from a PTP in OIl and Gas

[rtaxc]

I am a passive limited partner in a PTP in oil and gas with a loss shown on the K-1 in Box 1 Ordinary business income (loss).  This loss cannot used in the year it was reported since there is no passive income.  The loss is to be suspended to future years to either offset gains in the PTP or be used when I dispose of the PTP.  I input all of the data from the K-1 into TT and the dollar amount of the loss never appears anywhere on any IRS forms or worksheets produced by TT.  If I don't show the loss on any forms or worksheets that I submit to the IRS, how will I be able to later claim the losses when I sell the PTP?    I would have expected this loss to appear on Form 8582 and it's worksheets, but it did not.  BTW I tried experimenting and changed this from a PTP to a non PTP and it did show up on 8582 and worksheets.  I also have a non publicly traded partnership in oil and gas that also had a passive loss shown in Box 1.  This loss was shown on 8582.  Both of these partnerships are listed on Schedule E p2 line 28 but the losses are not shown, it just shows zero for passive losses allowed under column f with nothing shown for column g passive income.   So anyway the dilemma is how does the IRS know that I have this suspended passive loss form the PTP if it's not shown on forms that I submit to the IRS?  Is this a problem with the Premier TT software?  Am I supposed to report this unallowed passive business loss on some other form?

[Rick19744]

PTPs are a special breed and are not treated like "normal" passive activities.  As such, they are not reported or tracked on the form 8582.

I am sure, if you indicated in TT that the K-1 was a PTP, then the software most likely maintains a separate white paper detail specific to that PTP; since each PTP is handled individually.

See the instructions to the form 8582 page 13 "Special Instructions for PTPs".

https://www.irs.gov/pub/irs-pdf/i8582.pdf

[rtaxc]

I scanned all of the files generated by TT and nothing (other than the K-1 for which TT creates a duplicate shows the Box 1 loss).   Thanks for your reply😊

[rogge1722]

The General Partner retains and has sent a copy of your K-1 to the IRS so nothing gets lost.

You should have 2 documents for this PTP.

1. The header is "Partner's Share of Income, Credits, Deductions, etc."

If you have the desktop version, use Forms Mode to bring it up. If you got the online version, there should be some way to view it.

Once up on the screen, scroll down to Section C. You will see a zero under (f) even though you have suspended losses. TT inserts that as a convenience so you know what will appear in schedule E, pt.2.

2. The 2nd document header is "Publicly Traded Partnership Worksheet." Under allocation of Passive Losses in column (h), you will see a zero which is normal.

[rtaxc]

Thanks I appreciate the help, although I think it would have been better if TT had the losses displayed somewhere on the forms I send to IRS.

[rtaxc]

How do you report your prior year losses when I completely dispose of my Oil and Gas PTP?

[Critter-3]

In the K-1 entry section of the program interview there is a place to enter prior year unallowed losses .. review that section carefully ...  as you proceed watch for these 2 screens :