michele
Level 7
12-07-2019
05:14 AM
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Have rental partnership losses not showing on 1040. They have basis to take the losses. Is there something I am not marking. I did not want to mark that it was not a passive activity. Yes their income will allow for a loss so that is not a problem. I have entered their basis.This is a new client and was wondering if I missed marking something.
thanks
Michele
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sjrcpa
Level 15
12-07-2019
05:14 AM
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Passive losses are not allowed unless there is an equal or greater amount of passive income. Look at the Form 8582.
The more I know the more I don’t know.
sjrcpa
Level 15
12-07-2019
05:14 AM
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The $25,000 exception for rental real estate with active participation probably does not apply to rental income flowing from a partnership.
The more I know the more I don’t know.
The more I know the more I don’t know.
michele
Level 7
12-07-2019
05:14 AM
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I was looking at the 25,000 exception. The husband and wife are sole owners of the properties. It looks like I would have to mark it as not a passive activity to get it to show
sjrcpa
Level 15
12-07-2019
05:14 AM
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Under partnership K-1s there is a box to check "Actively participated in real estate"
The more I know the more I don’t know.
The more I know the more I don’t know.
michele
Level 7
12-07-2019
05:14 AM
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thx
