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Level 4
March 17, 2022
Solved

Partnership K1 Loss - Does my client have to take his K1 loss on his 2021 tax return?

  • March 17, 2022
  • 5 replies
  • 26 views

My client has a K1 loss of $13,769 from a multi member LLC. Does he have to take this loss this year? Can he take it in 2022 or spread it out over several years? If yes, how do I do that. Thank you.

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Best answer by sjrcpa

It is not passive. He participates in the running of the business.


Then the loss goes on this year's return.

5 replies

Just-Lisa-Now-
Intuit Community Champion
March 17, 2022
You cant pick and choose when to use it, so no, you cant spread it out over multiple years....but does he have enough basis to allow taking a loss?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 4
March 17, 2022

I think he does. The ending capital account is $28,833. However, they have $7,117 in nonrecourse and $35,396 in qualified recourse liabilities. The loss is only 13,769. 

sjrcpa
Level 15
March 17, 2022

Is it a passive activity?

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