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RedBrick
Level 2

Forgot to enter a K-1 in 2018, do I need to amend?

In preparing my 2019 tax returns, I realized I forgot to enter a K-1 in 2018 (specifically for a real estate syndication deal that was initially invested in 2018). The K-1 reported a loss and had no distributions, but I am not sure if I NEED to amend my 2018 Tax return as the same syndication for 2019 has a "Partner's Capital Account Analysis" section which  is a running balance of all the losses the investment has had thus far (i.e., the starting balance of this section for 2019 is prior year's ending balance after factoring in the losses in 2018). The only thing that probably wouldn't be captured is my initial capital contribution since 2018's K-1 has that amount w/ the loss to get me to the ending balance which was used in 2019's beginning K1 balance. I did not have a similar passive income that could be offset with the 2018 K-1 loss, so it isn't like I'd receive a tax benefit in 2018 from amending. 

 

My biggest concern is whether not amending my 2018 tax return would disqualify me from using the 2018 K1's losses to offset the gains when the real estate asset is sold at a future date. Any advice would be appreciated! 

 

Thank you!

1 Best answer

Accepted Solutions
DianeC958
Expert Alumni

Forgot to enter a K-1 in 2018, do I need to amend?

Yes, you need to amend your 2018 return to include the information from the K-1 you received.

 

If you have basis in the business, you can take the loss currently and receive a refund.  If you do not have enough basis to take the loss, then the information is recorded as part of your take return to take the loss later.

 

 How to amend your prior tax return using TurboTax

 

Once you have put the information in, you will need to print, sign, date and mail your amended return according to the instructions that print out with the return.

 

 

Amended returns cannot be efiled.

 

@RedBrick

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1 Reply
DianeC958
Expert Alumni

Forgot to enter a K-1 in 2018, do I need to amend?

Yes, you need to amend your 2018 return to include the information from the K-1 you received.

 

If you have basis in the business, you can take the loss currently and receive a refund.  If you do not have enough basis to take the loss, then the information is recorded as part of your take return to take the loss later.

 

 How to amend your prior tax return using TurboTax

 

Once you have put the information in, you will need to print, sign, date and mail your amended return according to the instructions that print out with the return.

 

 

Amended returns cannot be efiled.

 

@RedBrick

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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