How to enter passive loss carryover from K1

[gregandyuhong]

I have passive loss carryover from 2017 (on form 8582, filed by an accountant not TT last year). When I went thru K1 entry on TT for 2018 tax filing, I get to below screen for entering passive loss carryover. How should I populate this (get what number from which form to populate each field, 8582 or another form)? Thank you so much. 

[Anonymous_]

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@gregandyuhong wrote:

I have passive loss carryover from 2017 (on form 8582, filed by an accountant not TT last year). 

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The relevant figures should appear on your 8582 worksheets. If for whatever reason, they do not, you should contact the accountant who prepared your return for the previous tax year.

[gregandyuhong]

Thank you very much, Tagteam. I do have Form 8285, however how should the numbers from Form 8285 be entered into the "input" screen on TT for loss carryover? i.e. what is the "Box1 ordinary income", "Box2a " on the screenshot in my original post, as I don't see those boxes on Form 8285? 

[Anonymous_]

You are welcome, but you need to get the worksheets from your accountant.

The boxes you mentioned are for pass through ordinary income and ordinary income from recoveries. If you had the worksheets your accountant likely has in his/her possession, this would be infinitely easier for you to enter the appropriate figures in the correct boxes.

[gregandyuhong]

I have worksheet 1-7 for Form 8285 but still don't find any box match the one on the screenshot to input.. what am I missing? 

[nikul_patel]

Greg, I have the same problem. Did you figure this out?

[sjklingaman]

I have the same issue!

[DianeW777]

A passive loss carryover that is derived from the operations of the activity should be entered into the box labeled Ordinary Income with a minus (-) to indicate loss.  Results will be dependent on the percentage of ownership, whether it's a partnership and if so where it is a publicly traded partnership (PTP), whether it is a rental real estate activity, or whether it is an S-Corporation.

If the loss is due to a sale of capital assets then continue to the next screen to enter the loss carryover there.  As indicated above, your worksheets from the prior return will provide the details of the loss carryover (Form 8582 with worksheets).

[vinaytt]

I am running into same issue with TT 2023. How to enter this information?

[DianeW777]

It depends.  My example will be for a partnership 1065-K1.  When you are in the K1 entry you must look for the screen with a checkbox. If it isn't checked then the page will not come up for your to enter your loss carryover.

• 'I have passive activity losses carried over from last year' 

1. Open your TurboTax return > Search (upper right) > Type k1 > Click the Jump to... Link > Select Yes > Start or Update beside your K1
2. Continue to the screen noted above and make your selection
3. Continue to the screen with the loses you need to enter 

Watch for any specific instruction on each screen.

@vinaytt 

                                 

[OandH]

Greetings, when I am running a review I am getting an error:

Sch K-1 Wks-Partnerships (xxxxxx): Passive operating loss...sum of losses in individual years should not be greater than the total loss ($-2302).

that the total losses from 2021 and 2022 do not add up correctly and TT does not allow me to change that total anywhere.

2021 = -$3158 

2022 = -$2303 ( this is highlited in Red after running the review)

and for some reason there is an entry next to 2018 of +$3158, however we did not have a K1 until 2021

Would appreciate you help/advise

Cheers

O.

[SiKh]

What is the difference between Box 1 and Box 2?

[scoughlin2]

This is verbatim from Form 8582, Part 1, line 3.

3. Combine lines 1d and 2d. If this line is zero or more, stop here and include this form with your return;
all losses are allowed, including any prior year unallowed losses entered on line 1c or 2c. Report the
losses on the forms and schedules normally used .................

So, take a look at the partnership K-1 for this year.  Does it report box 1 or box 2 income?  Report your prior-year unallowed loss in the box that is normally used for that partnership.  

[scoughlin2]

The boxes are on the Schedule K-1.  It tells us what kind of income the partnership generates 

box 1: Ordinary Income

box 2: Rental Income

https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf