I have a K-1 loss of $11,228. It does not show up online 7a f 1040 (from Schedule 1, line 9)as a deduction to lower my taxable income. Please help or explain what I am missing? Thank you, Steve
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Thank you so much! That was the problem. I had not checked the box"materially participated", now, I did and everything is verything is fine now. It shows the loss of 1040 under other income. Much appreciated. Steve
It shouldn't show as a loss in "Other Income", it should be on Sch 1, Line 5.
And your previous comment "Aren't I supposed to reflect my K-1 loss from my S-corp on my 1040 and take the deduction to lower my taxable income? Isn't it the reason why we establish S-corps?"
Establishing an S-Corp for losses seems like alot of work for no reason...you could have had a loss on Sch C just the same.
"...Isn't it the reason why we establish S-corps?" No, it isn't. It's for liability protection and possible savings on SE tax.
How was this 'loss' generated?
WAS a W-2 generated?
ARE you a professional tax preparer?
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