Passive loss carryover: Clarity on how TT is asking about box 1 vs box 2a

[mwreynolds]

My question is similar to Solved: I have a schedule K-1 LLC. What do I put for carryovers for "Box 2a"? Do I put my passive ac..., but I am not quite able to translate that to my use case.

Let's say that ABC LLC had a loss (rental activity, K-1 / 1065 box 2) last year which was not allowed to offset anything that year, and so carried over (specific row in Form 8582 Part V and contributing to 8582 Part I line 2d). Let's say the number for ACB LLC in 8582 Part V was "-500".

For this year, I am struggling with how to represent that in the "I have passive activity carryovers from last year" workflow, particularly the following page "Report Carryovers - Regular Tax". Do I put the -500 in "Box 1 - Ordinary income", *or* "Box 2a - Ordinary Income", *or* somewhere else?

Some thought going in to this:
- What are these box references? Should they really be "8582 Part I line 1d" and "8582 Part I line 2d"? Are they even referring to 8582? If not, what form are they referring to.

- When I first entered this K-1 for current year, I think TT automatically put the -500 value in the "Box 1" box, so that might be right.
- On the other hand, I have read that "Box 2a" may be the right place for real estate rental losses.

Thanks for any advice.

[PatriciaV]

In most cases, use Box 1.

If you enter the amount of carryover in either the Box 1 or Box 2(a) box in TurboTax, it will show in on Form 8582 Part V column (c) Prior Years Unallowed Loss (as a total of the two boxes) and you will get credit in the current year for your prior year loss carryover.

Box 2a is described as coming from Form 1040 as "Ordinary income from recoveries," which typically relates to litigation and not specifically to rental activities.