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A passive activity became worthless in 2019. The system is not deducting the prior disallowed losses. How to I get the system to deduct these losses?
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A passive activity became worthless in 2019. The system is not deducting the prior disallowed losses. How to I get the system to deduct these losses?
You need to indicate that the passive activity dissolved in 2019, and this will be the last year of reporting. Did you receive Schedule K-1? Was this a passive loss from a rental property? Be certain that the carryover losses from prior years are reported. If you used TurboTax in the past, these losses should carry forward automatically from year-to-year. If not, you will need to indicate the amount of carryover losses from passive activities.
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A passive activity became worthless in 2019. The system is not deducting the prior disallowed losses. How to I get the system to deduct these losses?
I received a letter in 2020 that my investment is now worthless. I had previously received K-1's with tax year 2018 being the last one received. The letter said no K-1 will be issued for the 2020 tax year. where do I enter this loss (passive) in Turbo tax. I originally purchased my interest in the company in 2006. Do I enter this in the K-1 section or stock loss in 2020? As I did not and will not receive a K-1 for 2020, the section of TurboTax for K-1's only allows entries if I received a K-1. Any help is appreciated.
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A passive activity became worthless in 2019. The system is not deducting the prior disallowed losses. How to I get the system to deduct these losses?
Your business interest will be treated the same as worthless stock. When it becomes totally worthless you have a capital loss. For the entry, see How do I deduct worthless stock?
Treat worthless securities as though they were capital assets sold or exchanged on the last day of the tax year.
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A passive activity became worthless in 2019. The system is not deducting the prior disallowed losses. How to I get the system to deduct these losses?
Excellent !
That seems logical.
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