Sell of land in LLC at a loss K-1 shows (Negative ...
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Sell of land in LLC at a loss K-1 shows (Negative $165k)

my wife and I owned an LLC which sold property in 2019 at a loss of -$165k. K-1 shows the loss. When I do our taxes I come up with an income of negative $99K for the year. Is this carried over to next year? Will TurboTax pick this up next year or do I have to enter the amount if it is carried over. How do I ensure that it is carried over into next year?

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Expert Alumni

Sell of land in LLC at a loss K-1 shows (Negative $165k)

The loss shown on your K-1 and the loss from selling the LLC that generated the K-1 are two separate losses.

 

The loss on the K-1 is the operating loss for the year, up to the time you sold the LLC.  When you enter that K-1 into TurboTax it reports correctly as a business operating loss for the year.

 

The loss on the sale of the LLC itself is a separate entry in TurboTax. During the entry of the K-1, you will get a question asking if you "disposed of a portion of my interest during 2019".  When you select that box, TurboTax will walk you through the sale.

 

To get back to the K-1 to Edit it, click the "magnifying glass Search" icon, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to Edit the K-1 to indicate that you disposed of a portion of your interest.

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Sell of land in LLC at a loss K-1 shows (Negative $165k)

Will I be able to carry over to next year the loss that I have that is above and beyond my income for 2019? ie the -$99K

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Expert Alumni

Sell of land in LLC at a loss K-1 shows (Negative $165k)

No, the loss on the K-1 is the business loss and is taken in the year it happened, it does not carry forward. 

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