I have loss on my k1. can I deduct the loss from my w2 income and other investment income? if so, where should i deduct the loss?

[AmandaR1]

You should enter the schedule K-1 into the software and it will handle all of the calculations for your return. As far as if a loss is deductible, it depends on the type of activity it's from. Passive losses will only offset other passive income, like investment income.

If it's considered self-employment loss and you actively participate in the business, then it may offset other earned income. In either case, the software will handle it and you should enter everything exactly as reported on your schedule K-1. 

To enter: Income >>> If asked, choose to get to the full listing of options >>>  Scroll down to Business Income and Estate/Trust Income >>> Click Edit next to schedule K-1

[avinewman]

Hmm... I have a reported loss from a K-1 in which I was a General Partner (not a Limited Partner) but the software did not apply this loss against my W-2. Why might this be?