I would appreciate some help as to how TTax is supposed to populate columns (c) and (d) in Sections A and B of schedules K-1. This is important since those numbers (as opposed to the numbers typed in by the user on lines 1-21) flow into Schedule E and other forms.
TTax explains column (c) as follows:
Sch K-1 Wks-Partnerships: Line 1a column (c)
Net Income(Loss) Allowed:
Sum of Suspended Loss Carryover from Prior Year and Gain (Loss) Limited by At-Risk Rules columns, adjusted by any passive loss limitations from Passive Activities Parts VIII and IX (regular tax).
I have two K-1’s, both passive and at-risk: in one of them TTax populated column (c) with the NEGATIVE value of a gain from line 10. In another, it populated it with “0” even though there is gain on line 1 of the K-1.
Column (d) is defined as:
Sch K-1 Wks-Partnerships: Line 1a column (d)
Loss Suspended for Current Year:
Sum of the three prior columns: Gain(Loss) Limited by At-Risk Rules, Suspended Loss Carryover from Prior Year, and Net Income(Loss) Allowed (regular tax).
TTax correctly calculated the current year suspended loss in both my K-1’s, REGARDLESS of the entry in column (c)! So clearly the program does not do what the explanation says.
What should go in column (c)? Thanks in advance!
P.S. To make the plot even more interesting, the IRS computer expects any gains to show up in column (c) and then flow onto Schedule E and be taxed, even though there are ample suspended losses to offset these gains. But that is another question, I would be happy to just understand what should TTax put in column (c) and why it populated that column the way it did.
