Oklahoma nonresident - passive real estate losses

[Creeto1]

I have a K-1 for Oklahoma with passive real estate losses.  My source income for Oklahoma is a loss (negative).  How do I know that this loss will be carried forward in turbotax for future Oklahoma tax completions? I'm assuming I don't enter it  in the secant of "Net Operating Loss" because the loss is passive and not an actively managed business loss. Is this correct?  There is also a "Passthrough Entity" declaration section on turbotax.  Is this necessary to complete in order for the passive loss to be carried forward?

[ThomasM125 · Accepted solution]

Your suspended losses will show on federal form 8582, Passive Activity Loss Limitations. That form will carry over automatically in TurboTax to future years. The loss will be applied to future Oklahoma tax income as is allowed by law.

The loss is not a net operating loss, that occurs when you have more in allowable business losses than you have ordinary income. 

I'm not familiar with the passthrough entity declaration section, but the only thing you need to create the form 8582 and have your passive losses reported is to enter the schedule K-1 and answer the associated questions accurately.