How do I handle K-1s received by an S corporation that show a loss and no at risk basis, in the States?

Forum|Forum|3 years ago
August 12, 2022
1 reply
5 views

S corp is a partner in a partnership. No at risk basis. The partnership shows a loss so we are deferring the loss on the federal return. It came with multiple state k-1s. How do we handle that on the State returns?

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sjrcpa

Level 15

Same way. If they aren't at risk they can't claim the loss.

The more I know the more I don’t know.

N

Nancy9Author

Level 4

I guess my real problem is that most of the states begin with the federal number and ask for total sales in that state vs. total sales. These states have gotten k1s so I assume I have to do a tax return, do I use zero as the sales receipts in those states or do I need to get actual sales amounts from the k-1 issuer? And if I do that the client would owe tax on income earned in the home state not the non resident states....

sjrcpa

Level 15

Is the partnership related to their S Corp business? Or is it an investment?

Maybe the income/loss is allocable instead of having to part of the apportioned income.

The more I know the more I don’t know.

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