topic Schedule K-1 section 1231 loss increases my tax in Business & farm

Schedule K-1 section 1231 loss increases my tax

cec1 — Tue, 24 Feb 2026 07:23:38 GMT

I'm entering Schedule K-1 information for a real estate partnership. The partnership sold some properties at a loss. When I enter a "Section 1231 loss" amount (negative number) from Box 20 on the K-1 form, my tax amount increased in TurboTax. Why would a loss increase my taxes?

Re: Schedule K-1 section 1231 loss increases my tax

cec1 — Fri, 15 Sep 2023 16:40:09 GMT

Correction: The Section 1231 loss is from Box 10 on the K-1 form.

Re: Schedule K-1 section 1231 loss increases my tax

Mike9241 — Fri, 15 Sep 2023 16:57:23 GMT

this does not completely explain your situation but if that loss also appears on line 20Z, then it reduced or eliminated the QBI/199A deduction thus increasing your taxes.