Schedule k-1 question

[gerryj1216]

I received a schedule k-1 from a stock that I bought(a publicly traded company) and in box 1,2 and 3 there are 0 values in these fields. I am using a TT 2021 premiere and I am not sure how to enter this in the software. In the check activity box there is a box that says " this k-1 reports amounts in more than one of boxes 1,2 and 3? should I check this box?

[nexchap]

Are there values in other lines of the K-1?  If so, you'd just enter 0 for box 1, and then continue in the interview to enter the other values on the other lines.

If its nothing but 0s, you don't need to enter it.

[gerryj1216]

yes thank you very much. appreciate for the help. I do have another question as I received several K-1 this year. In turbo tax premiere under "describe the partnership" and it ask me to answer several options. One of them that I don't understand is the box where it says "I have passive activity losses carried over from last year". All my schedule K-1 are PTP and in the schedule K-1 form is there a box that indicates that I need to check this "passive activity losses" box? If box 1 has negative value is that considered a passive activity loss?

[JamesG1]

At the screen Describe the partnership, have you clicked This is a publicly traded partnership?

This will generate a Publicly Traded Partnership Worksheet to record passive activity by PTP.

For a PTP, a negative value likely indicates a passive activity loss.  Did you own the PTP's and report income or loss in previous years?  

If so, there may be passive activity loss carried over from previous years to report.

Passive activity loss rules are a set of IRS rules that prohibit using passive losses to offset earned or ordinary income. Passive activity loss rules prevent investors from using losses incurred from income-producing activities in which they are not materially involved.

[gerryj1216]

Yes I clicked the box where it says publicly traded partnership. I just bought the stock last year but box 1 has a negative value in the schedule k-1. If this a passive loss how do you reflect this using TT premiere? Since I just owned it there are no losses from last year(2020) or years previous to this. Will TT automatically reflects that as passive loss?

[PatriciaV]

Yes, enter the information from Schedule K-1 as it appears. If you have questions about completing the K-1 section, be sure to use the blue hyperlinks (ex: Learn More). 

TurboTax will process your entries and report them appropriately. If you have a passive loss that cannot be used this year, it will be carried over to future years.