hedgeslaw
Level 3

Regardless, whether or not the suspended losses were reported on line 10 of the K-1 1065 you can enter the release of suspended losses on the taxpayer's 1040 by going to SCH K-1 PARTNERSHIP-ATTDL INFORMATION 1 ... then go to the Box 10 area ... then on Line 4 (portfolio income or loss) enter RELEASE OF SUSPENDED LOSS and enter the suspended losses as a negative amount.

Verify the negative amount flows to page 2, Sch E, as an Ordinary Loss.

You might want to check to see if the properties were "grouped" by the partnership. Sometimes losses get trapped until all the grouped items are sold.

Also, you may need to attach as a PDF your Basis Computation for that partnership if you took a draw or had loan transactions with it. If so, check that box on page 2, Sch E, Col (e) and attach the PDF.