topic Re: How to Winnow down K-1 Passive Carry Over Losses to only New York income source if Non Resident in Get your taxes done using TurboTax

How to Winnow down K-1 Passive Carry Over Losses to only New York income source if Non Resident

WSO — Wed, 11 Feb 2026 10:28:55 GMT

I want to confirm the best way to correct my New York TT return so it doesn't count LLC real estate passive carry-over losses that are not from a New York source. I am a Texas resident with many LLC rental properties in several states with federal K-1s and state K-1s where each property is located.

Have completed my Non-Resident New York return. When I go to FORMS, I see TT has created an IT 182 worksheet for all 25 of my LLC properties. In this worksheet, Part II line 5b, (amount of income/loss attributable for NY sources), TT has filled in the full federal amount for Part II line 6 (passive carry-over losses) for every LLC. Also federal amount is in lines 7,8, and 9. Could someone confirm I must go to FORMS to fix this? I would input $0 for all lines 5 to 8 in each worksheet that is not a NY property. And/or adjust the values for NY properties to reflect the state K-1 values for an LLC with multiple properties. For the latter how is lines 8 calculated? Thank you

Re: How to Winnow down K-1 Passive Carry Over Losses to only New York income source if Non Resident

Anonymous_ — Sat, 21 Dec 2024 17:22:54 GMT

Re: How to Winnow down K-1 Passive Carry Over Losses to only New York income source if Non Resident

WSO — Wed, 25 Sep 2024 11:39:33 GMT

I found the answer! It can be done in TT step-by-step. On the "Changes to Federal Income" page under Business Related Adjustments, select, "Unallowed passive activity loss calculations. It will take you to a list of all K-1s from the federal return. Select each in turn. On the first page for each K-1, there is a check box to denote that K-1 doesn't apply to NY source income. You can see the changes to the IT-182 form for each K-1 in the TT Form view.