Hi experts, I had passive loss carryover -$300 (real estate activity) from the same partnership last year and this year my K1 has both business activity (-$1000 loss) and real estate activity ($1000 gain), which are both regarded as passive activities for me. As Turbotax suggested, I split into two K1s and go through the interview process, my question is, could I report the last year's passive loss only in "real estate activity", or in both "business activity" and "real estate activity"?
Here's the question:
Describe the Partnership:
[ ] I have passive activity losses carried over from last year
If checked, in next screens, I will input the loss details from last year
if you used turbotax last year the passive loss disallowed should already be present. the PAL c/o goes with the k-1 reporting the real estate profit.
Thanks, @Mike9241 for the quick confirmation. Make sense, so for future years, we will track the separate loss carryover for the corresponding activities? The confusion here is both activities are "passive" gain/loss but I guess botton line is we cannot deduct twice here.
In my example
Real estate net income allowed: $1000 - $300 (carryover) = $700
Passive Loss carryover to 2023: $0
Business net income (loss) allowed: -$700
Business loss suspended for current year: -$300
Passive Loss carryover to 2023: -$300
Let me know if I understand correctly