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Level 2
posted Mar 19, 2025 2:57:47 PM

My K1 For ET Has a Positive amount in Box 1 7K plus. It seems to put it in regular income, my understanding is it should be capital gain

I have Capital loss carryover and should wipe this out but it does not.

0 1 678
1 Replies
Expert Alumni
Mar 20, 2025 8:53:52 AM

Schedule K-1 Box 1 reports several categories of ordinary income (business, rental, investment, other). Capital Gains are reported in Part III on Line 8-10. Only capital gains can be offset by capital loss carryovers.