topic How do you enter a loss on line 3 of a schedule K-1 in Business & farm

How do you enter a loss on line 3 of a schedule K-1

truesober4 — Sat, 01 Jun 2019 14:09:10 GMT

my schedule K-1 on line 3 has entered 4770 Loss. line 5 has 27 Loss. line 9 776.- under that R.E. taxes. What does loss mean and tax form only shows to enter #s witch Im not sure what the numbers are either. this is how it read in the box, no sense to me

What kind of entity issued the K-1? partnership, S-Corp,...

IreneS — Sat, 01 Jun 2019 14:09:11 GMT

What kind of entity issued the K-1? partnership, S-Corp, Estate/Trust?

estate/trust. my concern is that I thought being Im a sib...

truesober4 — Sat, 01 Jun 2019 14:09:14 GMT

estate/trust. my concern is that I thought being Im a sibling I didnt have to pay tax on money received from estate. the money brought in was from my dads share of a beach house he owned with his two sisters. my share was 35,000. Is this amount concidered income?

You are correct -- the money you inherited is not taxable...

IreneS — Sat, 01 Jun 2019 14:09:16 GMT

You are correct -- the money you inherited is not taxable and you don't have to enter the K-1 into your return. However, in your case the K-1 is reporting a loss on lines 3 and 5. This can be deducted from your taxable income, so it is to your benefit to enter the information in your return. If you itemize deductions, you can also include the real estate taxes paid by the estate on your behalf.

If any of the lines on your K-1 have a loss, enter the numbers as a negative (-4,770, for example).