I have a K1 with an entry for 13d code W that I wish to flow to Schedule E, Page 2, in the Passive columns.
The Turbotax prompt for 13d Code W has these questions below (screenshot). Depending on what I select, it flows to different parts of return.
The “I have another description item” one does not flow anywhere when I tested it -- where is it supposed to flow to?
I can select the “nonpassive deduction to be reported on Schedule E, page 2” selection and that flows to Schedule E, page 2, but it’s not technically correct since it’s not nonpassive income (my entry should be passive).
Why is there not an entry for Passive deduction to be reported on Schedule E, page 2?
Here's what you are going do, in the k-1 input, you will check off boxes 19,20,21 like this
then continue, continue, continue till this screen, check off I have passive actrivity loss
next screen, enter it in as a loss like this
and depending if you have passive activity to have these losses offset against them it will show up on the form 8582 like this
This would be a good workaround to pick up these losses from the passive activity which would seamlessly flow to Sch E pg. 2
In my particular case, it remains 0. Depending on your circumstances however the number may be different. Nonetheless, see how it shows in the Passive Income and Loss section as per your request.
Enjoy the rest of your day!
@AbrahamT thanks for the reply.
Do I still check Box 13 during the K-1 input, since the K-1 I received has Box 13 entry.
Also I'm curious, what is the checkbox for "Nonpassive deductions to be reported on Schedule E, Page 2"? what is the purpose of this?
And how come there is no similar for "Passive deductions...on Schedule E, Page 2"?
And what is "I have another description item" and where does it flow to?
see below image.
1- Yes, check the Box 13 entry.
2- Nonpassive activities are businesses in which the taxpayer works on a regular, continuous and substantial basis. Also, salaries, guaranteed payments, 1099 commission income and portfolio or investment income are deemed to be nonpassive.
3- Passive income include the following;
Equipment leasing.
4- Most likely passive deductions would not be entered here. It would typically reported as a carryover from the year before like I already explained to you where that goes or may be from a rental property which would be entered in Box 2 from the k-1 unless you are a qualified real estate professional . See HERE pg. 3 and 5 as to what goes under that category.
5- Does your code 13W show another description item, then depending what it is, that's where it will flow through to.
Lots of luck! I hope I answered all your questions.