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JDB2010
New Member

I had an investment K-1 last year in which I had a passive loss in box L. Where should this be recorded on this year's taxes to offset this year's passive income?

 
5 Replies
Irene2805
Expert Alumni

I had an investment K-1 last year in which I had a passive loss in box L. Where should this be recorded on this year's taxes to offset this year's passive income?

If you used TurboTax last year, the passive loss should have carried over automatically.  If it didn't, please follow these steps:

  1. Click on Federal > Income & Expenses
  2. Under S-corps, Partnerships, and Trusts click on the Revisit box next to Schedule K-1.
  3. Click Yes on the next screen, Schedules K-1 or Q.  
  4. On the Tell Us About Your Schedules K-1 screen.  Click on the Start/Update box next to the appropriate K-1
  5. If you have already entered K-1 information, you will see the K-1 Summary screen.  Click  Edit to continue with the existing form entry.  
  6. On the screen, Did you participate, click the NO box.
  7. As you go through the screens to enter the K-1, you will see a screen, Describe the Partnership. [For an S-Corp the screen will read Other Situations.]
  8. Mark the box  I have passive activity losses carried over from last year and click Continue.
  9. On the next few screens, you will be asked to enter the carryovers for both regular income and AMT.

 

HowardL
Level 1

I had an investment K-1 last year in which I had a passive loss in box L. Where should this be recorded on this year's taxes to offset this year's passive income?

 I am trying to respond to the questions in Turbotax "Describe the Partnership", one of the options was "I have passive activity losses carried over from last year".  

 

How do I confirm whether I have (or I don't have) passive activity losses from 2018 for the K-1 partnership that should be carried over to 2019?  I used Turbotax in 2018 to report K-1 information and kept all the worksheets.  Which form or worksheet in either 2018 or 2019 Turbotax that I can verify this information? 

 

Thanks in advance for your help.

DavidS127
Expert Alumni

I had an investment K-1 last year in which I had a passive loss in box L. Where should this be recorded on this year's taxes to offset this year's passive income?

The regular and AMT passive loss carryovers will be on the Form 8582 and Form 8582-AMT worksheets from your 2018 tax return.

 

Typically, entering these amounts is only necessary when you are using TurboTax for the first time (or using a different TurboTax Online account than was used in 2018).

 

@HowardL 

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HowardL
Level 1

I had an investment K-1 last year in which I had a passive loss in box L. Where should this be recorded on this year's taxes to offset this year's passive income?

@DavidS127

 

Thanks!

You gave me the best answer. But I could not find the button or the menu, so I replied it here.

 

Howard

DavidS127
Expert Alumni

I had an investment K-1 last year in which I had a passive loss in box L. Where should this be recorded on this year's taxes to offset this year's passive income?

If you are trying to enter your prior year passive losses for a K-1 partnership, there is "Describe the Partnership" screen (see below) during your K-1 entry, immediately after the last "box entry" screen (see below).  Check the line for "I have passive activity losses carried over from last year".   The following screens will have boxes for your carryovers from 2018.

 

Here's the "Describe the Partnership" screen:

@HowardL

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