Schedule E & PYA

paulpurser — Sat, 19 Sep 2020 13:22:14 GMT

When I enter Past year losses in my at-risk worksheet, turbo tax generates the PYA line item, but it also adds the unreimbursed expenses from past year carryovers to the K-1 Income column on my Schedule E... Does anyone know why? I thought that this line item should equal my total income from my K-1 form, but for some reason turbo tax is increasing it by that At-Risk unreimbursed Expense Amount. Thanks for any help.

Re: Schedule E & PYA

paulpurser — Tue, 22 Sep 2020 13:18:00 GMT

so I think i may have "intuited" what is going on... anyone else who may be able to say that this is correct would be appreciated, but when you take a PYA from past years, your required to create a new line on the schedule E… the loss recorded on this line comes from the at-risk worksheet. It is the total loss in section A (carryover column) that was recorded from previous years. If you have unreimbursed expenses in this section and your writing them off this year, it’s like your paying yourself back for those expenses which is why this line item also gets added to the income for this business’ k-1 income line. These numbers work out with what's happening on my schedule E so it kind of makes sense to me... anyone else have a thought?

topic Schedule E & PYA in Business & farm

Schedule E & PYA

Re: Schedule E & PYA