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

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Level 2
last updated ‎December 07, 2019 8:41 AM

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?

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Level 15
last updated ‎December 07, 2019 8:41 AM

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

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

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Highlighted
Level 15
last updated ‎December 07, 2019 8:41 AM

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

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

View solution in original post

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Highlighted
Level 2
last updated ‎December 07, 2019 8:41 AM
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  
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Level 15
last updated ‎December 07, 2019 8:41 AM
I’m glad you got it figured out. :smile::smile:
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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