I received a K-1 this year for a business started in 2022, which reflects a -$40k net rental real estate loss. I have added all the partnership details, % of shares, recourse amounts, capital account information, 199A amounts... everything that is asked for. When complete, the "Wages & Income" screen reflects $0.00 under Schedule K-1. I have tried to re-enter the information several times but cannot get the -40k loss to pull through into my income. Any help is appreciated.
----Full details----
Percentage of share: 40% for all beginning and ending boxes
Liability share (beg/end):
Nonrecourse 0/0
Qualified nonrecourse 0/0
Recourse 0/$500k
Capital Account Info
Opening Capital Account 0
Contributed Capital $500k
Current Year Income -40k
Ending Capital Account $460k
Box 2: -40k
Box 20: Code Z (199A), -40k
First of all, a rental loss is a passive loss that is only allowed to be deducted against passive income and then up to $25,000 of ordinary income, provided your adjusted gross income is not more than $150,000. So your income could be limiting the deduction.
Also, you can only deduct a loss to the extent you are "at risk" in the venture, you would have seen a question regarding that when you entered your K-1 schedule.