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Hello,
I have an individual client with a K-1 from a trader hedge fund. The K-1 reports some interest/dividends/capital gains. In the supporting footnotes, there's a section about net taxable loss, which I see is a reduction to the basis. Would this loss be deductible in the individual return as ordinary loss? Nothing was reported on box 1. Thanks!
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I'm sure that K-1 has a lot more numbers on it than just Line 1.
The more I know the more I don’t know.
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Yes, interest, dividends and capital gains
It's a trader hedge funds, meaning investment income but ordinary losses, I assume that's what the net loss is. Would it be deductible, if so where?
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Read through all the pages of the K-1 and the book of instructions that came with it.
Likely the loss on Schedule L is the sum of a whole bunch of other stuff on the K-1
The more I know the more I don’t know.
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Not much instructions unfortunately. And many say "consult your tax advisor". Do you know where would I enter it in Proseries?
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Probably nowhere. Enter the lines from the K-1.
The more I know the more I don’t know.
