K-1 with a ordinary business loss in box1 and the same amount in box 20 199a PTP income. How do I enter my basis so I can take the loss and not have it carried forward?

[JamesG1]

The basis may not be the issue.  Losses from publicly traded partnerships may only offset gains against the same partnership.

To report Section 199A income, at the screen Enter Box 20 info, select code Z Section 199A information.  A value does not need to be entered.

At the screen We need some information about your 199A income, you will likely need to enter an Ordinary business income (loss) for this business,

Publicly traded partnership losses have minimal use for the unit holder.

• If a certain PTP has a loss, that loss can only offset earnings in the future from that same publicly traded partnership.
• This is unlike non-PTP passive actions, in which allocated losses can go toward offsetting earnings for other passive actions.

For instance, PTP A reports $5,000 loss and PTP B reports $5,000 gain.  You are not allowed to net the gain against the loss on the 2024 Federal 1040 tax return.

You report the gain and pay income tax on the reported gain.

You hold the loss in suspension until such time that you can offset that loss against a gain from that same publicly traded partnership.

The partnership K-1 (Form 1065) records the partnership as a publicly traded partnership in Part I box D.

[kpfister1]

Thanks for the answer.   This is for a MLP.    When I sell the shares can I use the loss in suspension to offset the gain from selling the shares?