Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Partnership NOL Carryforward

Babak
Level 3

I have a new partnership client that reported loss last year. Since I did nor prepare their return last year, how can I add it to this year? Is it added to the Partnership return? or to the partners personal taxes?

 

This discussion has been locked. No new contributions can be made. You may start a new discussion here

5 Comments 5
George4Tacks
Level 15

See if you can reconcile the partners capital accounts for last year. Any loss on the 1065 should have ended up on the K-1s. 


Answers are easy. Questions are hard!
Babak
Level 3

Isn't that going to only apply to their capital balances? So they are not able to use it against this year profit?

sjrcpa
Level 15

Nope. All partnership items pass through to the partners on their K-1s. It's a flow through entity. Partnerships do not have NOLs.

The more I know, the more I don't know.
Babak
Level 3

Thank you

CR EA
Level 1

When I enter the K-1 Partners share of income and deductions for a farm partnership, on the partners 2021 Form 1040 Individual return, if it shows a NOL from 2020 line 23, and a NOL on line 24 for 2021 is this a correct way to fill out Explanation Statement?

2020 FORM 1040 NOL CARRYFORWARD $XXX

2021 FORM 1040 NOL CARRYFORWARD $XXXX