Negative at-risk recapture and subsequent deduction

Forum|Forum|6 days ago
August 26, 2026
1 reply
26 views

I can’t determine how to deduct the prior year at-risk recapture amount from a partnership in ProConnect? ProConnect is adding the recapture amount to the current year 1040 as ordinary income on Schedule E2 and IRS publication 925 states I should be able to deduct the amount added in last year’s return. Can’t figure out how to do that. Has anyone come across this in ProConnect?

ProConnect Tax

IntuitKatie

Moderator

Hi great to see you in the Community and thanks for posting! Here's a support article that should help with this:

Understanding at-risk limitations for K-1 losses in ProConnect Tax

Per this article, at-risk recapture carries over as a deduction to the following year and is allowed once the amount at-risk increases again (IRC 465(d)). This should be entered/tracked on the At-Risk tab under the passthrough K-1 screen for that activity, rather than as a separate manual entry elsewhere.

If you need further assistance with this we would reach out to ProConnect Tax Support.

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