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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
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