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Loss from K-1 reported on a high income return

pjjjp
Level 2

One of my clients received a K-1 form with a loss. His combined income totals $200k for the year. Can he still claim a loss on his 1040 tax return or should i just enter the K-1 for informational purposes and he wont be getting any deduction for this? thank you

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TaxGuyBill
Level 15

If the taxpayer as enough Basis, yes, it will be deductible.  There isn't an income limitation to claim an ordinary loss.

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13 Replies 13
TaxGuyBill
Level 15
Which box of the K-1 has a loss?
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pjjjp
Level 2
Box 1- Ordinary loss from an LLC
pjjjp
Level 2
I'm sure at some point in your careers you did not know this neither, and I never said I've been doing taxes for long. This is actually my first time working with a K-1 if you should know.

People would rather take the time to offend others rather than help...that;s great!!
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garman22
Level 12
Level 12
@pjjjp You need a mentor to help you prepare. There are still items that I come across after 30 years I am unfamiliar with....but I research and thankfully I have friends in the business who I can lean on in times of need. I looked at your questions and they are fairly basic. These are things you should know already. Good luck!  
abctax55
Level 15
:+1::+1:
Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
abctax55
Level 15
Sorry...my phone has the yips
Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
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garman22
Level 12
Level 12
:laughing: for sure.:laughing:
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TaxGuyBill
Level 15

If the taxpayer as enough Basis, yes, it will be deductible.  There isn't an income limitation to claim an ordinary loss.

View solution in original post

IRonMaN
Level 15
Passive loss maybe?
ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
pjjjp
Level 2
yes. My issue is that the proseries is not automatically transferring the loss is I'm entering on K-1 to box 17 .

thank you
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TaxGuyBill
Level 15
Is it showing up at all on page 2 of Schedule E?

Have you gone through the error check/review?
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De
Level 1

I have K-1 from a Partnership with a loss and he has basis to cover the loss.  So, how do I make Proseries make the loss available right now the loss is disallowed.

Thank you

DeAnn

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sjrcpa
Level 15

if it's a passive activity and he has no other passive income it won't be deductible this year. Look at Form 85882


ex-AllStar