TaxGuyBill
Level 15

I'm not sure why you are mentioning Form 8960 because that has nothing to do with claiming a loss.

  • What kind of K-1 is it?
  • Is the loss in Box 1, Box 2, or something else?
  • Does the client have enough Basis to claim the loss?
  • Does the client Materially Participate in the activity (and if so, did you check that box)?