I received a final K1 which shows Net Long-Term losses of $1,451. I have suspended passive losses from prior years totaling over $7,000. How can I get Turbo Tax to offset the capital gain with some of the suspended losses? I have checked the box that the "partnership ended in 2021" and that the "disposition was not via a sale", but the passive losses are still suspended. What am I missing?
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I meant to type that I received a final K1 which shows Net Long-Term GAINS (not losses) of $1,451. I have suspended passive losses from prior years totaling over $7,000. How can I get Turbo Tax to offset the capital gain with some of the suspended losses? I have checked the box that the "partnership ended in 2021" and that the "disposition was not via a sale", but the passive losses are still suspended. What am I missing?
Suspended passive losses cannot be used to offset capital gains. They can only be used to offset passive income.
Only a capital loss carried over can be used to offset your capital gains.
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