I receive a K-1 that historically had multiple activities:
- Box 1, 5, 9a - small amounts for ordinary business loss, interest income, long-term capital gain from investments
- Box 2 - net rental real estate income (loss)
As TurboTax instructs, I have been entering these as two K-1s.
Related questions:
- How do I treat this when one activity (box 1 etc) doesn't have any activity in the year? (Still holds investments, but they don't generate any items that flow down to the K-1, and may not for several years, until remaining investments are disposed of.) Should I still enter a second K-1 with zeroes, or should I delete it? If relevant, in the Passive Activity Adjustment to Income or Loss worksheets, column (d) Loss Suspended for Current Year, there is a small total loss. I suspect deleting this K-1 would lose the tracking of this suspended loss.
- When this activity (box 1 etc) finally ends (last investments are disposed of), how do I treat that? The K-1 would not have the "Final K-1" box checked, because the Box 2 rental activity continues. Should I nonetheless check the "This partnership ended in 2024" box in TurboTax in the last year of that activity? (Would that resolve the suspended passive activity loss, or move it somewhere else, since the partnership's other activities continue?)
Thanks!
