Schedule E

[bnag]

Re: Deductions on p2 of Schedule E in Part II. How can expenses/losses be itemized as they would be in Schedule C? If a lump sum is entered how are detailed records kept? I do not see in Turbo Tax even a link to a Zoom or Smart Sheet.

[Carl]

Page 2 (which is Part II) of the SCH E is for data from a K-1 that was issued to you by a multi-member LLC, Partnership or S-Corporation. Any and all detailed breakdown of the data on the K-1 (which ends up in PART II of your SCH E) would be on the business tax return of the business that issued you the K-1, provided the person who completed the business return and issued the K-1, entered the detailed information on that business tax return.

If the business was a multi-member LLC or Partnership, then the business would have filed a 1065 Partnership return. If it was an S-Corp, then it would have filed an 1120-S Corporate return. Detailed breakdown of income/expenses are *NOT* reported on the K-1 and can not be entered in detail anywhere on the personal tax return when you have a K-1.  The K-1 only deals with the "bottom line" figures. Any detailed breakdown "MUST" be on the business tax return, and only if whoever completed that business return took the time to enter the details.

[Anonymous]

you did not specify what type of deductions or on what lines they are being reported on for the k-1.  in some cases those expenses are no longer deductible by an individual.  most of those that are deductible (line 13 for 1065 k-1) would carry to your 1040 schedule A - the total of you allowable schedule A deductions would have to exceed your standard deduction to get any benefit.      certain losses reported on lines 1-3 may be subject to passive activity loss limitation, publicly traded partnership loss limitation, or even at-risk limitation.