How can 1065/K1 (PTP) loss not show current year unallowed loss to carry forward on form 8582 part V?

[mybesttaxservice1]

Taxpayer has five 1065 K1 (Public trade partner =PTP) which four has loss (each is about 5k-9k) and one small gain $702 on box 1 ordinary income of K1.

I input K 1 partnership exactly as forms provided from investors. I myself  just added "material " 

I insert form 6198 (passive loss limitation) for each K1 to input basic cost. I am aware basic cost allows to deduct loss not limit 

The section A of all  K1 show passive PTP. On top of this situation, tp has capital loss $3000. 

I know the loss passive PTP not allowed (restricted) because it only can off set passive income. 

I was confusing because for two below reasons

>Sche E page 2 , showed all K1 PTP loss as passive loss (0), but income $702 is non passive income (all K1 I checked material)

>Unallowed loss should show on form 8582 part V, but it does not show current year loss to carry forward

I must open the form 8582 to enter prior year loss. This is new client . The current year loss (un allowed )not show to accumulate total un allowed loss carry forward, only prior year loss I entered

Any expert or experienced tax please shares idea to help me please 

I appreciate it 

[sjrcpa · Accepted solution]

Each PTP stands alone. The loss from one can only offset income ffom that one.

Unallowed losses do not go on 8582 for PTPs.

What do you mean by adding "material"? Unless your client manages the PTP I don't see how they can materially participate in the activity of the PTP.

Prior year unallowed losses get entered in each K-1's screen, down toward the bottom if it works like Lacerte.

[mybesttaxservice1]

Dear sjr:

I appreciate you. That really helped me to gain knowledge, resolve the issue and be confident to answer my client's question.

For your question:

"What do you mean by adding "material"? Unless your client manages the PTP I don't see how they can materially participate in the activity of the PTP."

Ans: I just thought tax payer  must be material to work on that risk investment and be allowed loss (like passive rental income) . I must remove the check "material" LOL. Thank you for helping me 

Because I saw my client's prior return 2021 tax year (I did not  prepare), Sche E page 2 (all different PTP income and loss are off set each other)  and un allowed loss flowed to form 8582..I dont know how he could get there :).

Again, many thanks to spend time for me at this tax seasoning time 

[sjrcpa]

You're welcome.