I received K-1 for passive partnership for 2022 and 2023. For 2022, Business loss was 50. For 2023 Business loss is 54. However, I do have Unrecaptured section 1250 gain and Net section 1231 gain (loss) at $2 and $13 respectively for 2023. Also, I have Line 13, code AE for $3 and interest ($16) and dividend ($14). In Foot notes, business loss of -54 is repeated under section Line 20, code z section 199A information along with $13 1231 Gain that may constitute QBI.
My first question is in reference to Schedule C - Form 8995-A (Loss Netting and Carryforward). I expected field 1a (Qualified business income/(loss)) to be -54 as reported under Line 20 section Z. Turbo tax enters -13, this is the amount of passive loss allowed in 2023. Can someone confirm the correct value here?
My second question is in reference to Form 8582, part VIII. Form 8582 correctly imports net income (13), net loss (-54) and prior year unallowed loss (-50). It correctly calculates Total losses (13) in part III line 11. On page 2, Part V and VII are correctly filled but Part VIII is empty. Is this expected? It does not affect current or future taxes in any way but wanted to confirm if this was supposed to be empty.
