Loss from K-1 reported on a high income return

[pjjjp]

One of my clients received a K-1 form with a loss. His combined income totals $200k for the year. Can he still claim a loss on his 1040 tax return or should i just enter the K-1 for informational purposes and he wont be getting any deduction for this? thank you

[TaxGuyBill]

Which box of the K-1 has a loss?

[pjjjp]

Box 1- Ordinary loss from an LLC

[pjjjp]

I'm sure at some point in your careers you did not know this neither, and I never said I've been doing taxes for long. This is actually my first time working with a K-1 if you should know.

People would rather take the time to offend others rather than help...that;s great!!

[garman22]

@pjjjp You need a mentor to help you prepare. There are still items that I come across after 30 years I am unfamiliar with....but I research and thankfully I have friends in the business who I can lean on in times of need. I looked at your questions and they are fairly basic. These are things you should know already. Good luck!  

[abctax55]

:+1:

[abctax55]

Sorry...my phone has the yips

[garman22]

for sure.:laughing:

[TaxGuyBill · Accepted solution]

If the taxpayer as enough Basis, yes, it will be deductible.  There isn't an income limitation to claim an ordinary loss.

[IRonMaN]

Passive loss maybe?

[pjjjp]

yes. My issue is that the proseries is not automatically transferring the loss is I'm entering on K-1 to box 17 .

thank you

[TaxGuyBill]

Is it showing up at all on page 2 of Schedule E?

Have you gone through the error check/review?

[De]

I have K-1 from a Partnership with a loss and he has basis to cover the loss.  So, how do I make Proseries make the loss available right now the loss is disallowed.

Thank you

DeAnn

[sjrcpa]

if it's a passive activity and he has no other passive income it won't be deductible this year. Look at Form 85882