Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Can't get imported K-1 to show LLC members' losses as nonpassive.

Ekhaterina
Level 2

I have an LLC with two partners with 50/50 ownership.  Both members are active and materially participate, but when I import the K-1s into their Form 1040, the ordinary business loss is limited and is shown as passive, when it should be active without limitation.  I went back in to the K-1s in the LLC and changed the boxes so both show that they are general partners and LLC managing members.  What else do I need to do to accomplish what is needed?

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
IRonMaN
Level 15

There are some boxes to check near the top of the K-1 worksheet in the 1040 module.

I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309

View solution in original post

0 Cheers
3 Replies 3
IRonMaN
Level 15

There are some boxes to check near the top of the K-1 worksheet in the 1040 module.

I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309

View solution in original post

0 Cheers
Ekhaterina
Level 2
Hello IRonMaN,

Oh good grief!  I see what you are talking about in Part III at Item 1 "Ordinary business income (loss)" where I needed to check the box for "material participation."  It worked like a charm!

I looked for this 'til I was blue in the face last night after a 9+ hour day at my desk and couldn't see it!  I'm glad you guys are around to talk to.  Thanks very much!

Ekhaterina  
0 Cheers
IRonMaN
Level 15
I’m glad you got it figured out. :smile::smile:
I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309
0 Cheers