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Loss from K-1 reported on a high income return

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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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Level 12

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
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Level 12
Which box of the K-1 has a loss?
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Level 2
Box 1- Ordinary loss from an LLC
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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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Level 11
Level 11
@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!  
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Level 15
:+1::+1:
Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
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Level 15
Sorry...my phone has the yips
Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
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Level 11
Level 11
:laughing: for sure.:laughing:
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Level 12

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

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Level 15
Passive loss maybe?
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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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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Level 12
Is it showing up at all on page 2 of Schedule E?

Have you gone through the error check/review?
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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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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