K1 form all blank fields

[bhowe55]

I inherited a house and sold it last year. The sell price of the house 222k and the cost basis of the house shows a -37k loss. I run the reviews in both state and fed and get no errors. When I print the K1 form there are no numbers in any of the fields. Doesn't sound correct.  

Help!

Bill

[DianeC958]

A couple of things to check.  Switch to the forms mode by clicking on forms in the upper right hand corner of TurboTax.

On the left hand side you will see a list of forms.  Click on the Schedule K-1.  Check to make sure that you have an entry in Line B of the Beneficiaries Allocation Worksheet.  If this does not correct the issue or you have an entry in Line B then click on Dist Inc K-1.  This worksheet should show the amount of the loss for the home on line 4.  If there is not an amount there enter the amount of the loss.

If this is the is the final year of the estate the amount for the loss from the house should show on line 11 with a code C.

[Anonymous_ · Accepted solution]

@bhowe55 

First, you need to ensure that you have indicated the return is a final return. If not, the loss will not be passed through on the K-1 (losses are not passed to the beneficiaries until the estate is terminated and the return is marked as final).

Further, you need to indicate that the house was not used for personal purposes (see screenshot). If it was used for personal purposes the loss is not deductible and will not appear on the K-1.

[bhowe55]

The house was being used for personal use until it was sold. What does this mean for the K1 form?

[Anonymous_]

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@bhowe55 wrote:

The house was being used for personal use until it was sold. What does this mean for the K1 form?

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It means that you cannot recognize a capital loss (if any) on the sale of the house.

[bhowe55]

I dont care about the loss, I just dont want to pay any gains. I dont want the $201460 payout at the closing to show on my taxes. Do I submit a K1 form with blank fields on the taxes? 

Thanks, really stressed over this........

[Anonymous_]

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@bhowe55 wrote:

I dont care about the loss, I just dont want to pay any gains. I dont want the $201460 payout at the closing to show on my taxes.

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You do not have to be concerned with that if you have a loss. The $201,460 is, purportedly, less than your basis so you have a loss that will not be recognized if the property was held for personal use. On the other hand, you do not have a gain to report so this transaction will not appear on your K-1.

[bhowe55]

So do I submit a blank K1 form on my taxes or not report it? 

[Anonymous_]

The K-1, if generated, will be blank if that is the only transaction and you do not even need to file it if that is the case.

[bhowe]

If the house was used for personal use, then I check the appropriate box. No data is populated on the K1 form.  Do I just submit the estate tax and submit nothing on my personal taxes? 

[Anonymous_]

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@bhowe wrote:

If the house was used for personal use, then I check the appropriate box. No data is populated on the K1 form.  Do I just submit the estate tax and submit nothing on my personal taxes? 

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Yes, you show the transaction on your 1041 but, since there is no gain and the loss results from property held for personal use, you simply submit the return (1041); there is nothing to report on your personal income tax return as a pass-through from the estate if that were the only transaction.