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Level 3
July 7, 2020
Question

K-1 unallowed losses

  • July 7, 2020
  • 1 reply
  • 6 views

If a partner has losses limited because of his basis. Where should I enter the unallowed nonpassive losses  in form 1040? I entered in form K-1 income the losses allowed (partner's basis), but I do not find where to put the rest.

 

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1 reply

July 7, 2020

There MIGHT be a spot somewhere on one of the worksheets, but one option is to enter another K-1 and call it "PYA" (as directed in the Schedule E instructions) and enter the carryover loss that is now allowed due to restored Basis.