How to take a Loss on K1 ,form 8960

[SharonAnn]

I have a new 2024 client that had a K1 loss  in  2023 that showed up on a form 8960 and that loss carried over to the Schedule 1 line 5, lowering their  taxable income.   

I cannot get Pro Series to show  the same loss on their  2024 Taxes.    I need to have  Nonpassive income not Passive.

Thank you in advance 🙂

[sjrcpa]

What makes it nonpassive?

[TaxGuyBill]

I'm not sure why you are mentioning Form 8960 because that has nothing to do with claiming a loss.

• What kind of K-1 is it?
• Is the loss in Box 1, Box 2, or something else?
• Does the client have enough Basis to claim the loss?
• Does the client Materially Participate in the activity (and if so, did you check that box)?

[George4Tacks]

Create a duplicate, but NonPassive K-1. Input any NonPassive into it.   Pain in the patootie, but that's how PS handles it. 

[SharonAnn]

K1 is  1065 Partnership.

Loss is in Box 2 on K1

The client does not materially participate. 

I guess his 2023 could be incorrect.    The form 8960 was on his 2023 Taxes and I am trying to replicate the loss. 

      2023 Form 8960 Line 4a is ($37,234.00)

     2023 Form 8960 Line 34 is $37, 234.00  and that loss goes to schedule 1 Line 5.

[SharonAnn]

K1 is  1065 Partnership.

Loss is in Box 2 on K1

The client does not materially participate. 

I guess his 2023 could be incorrect.    The form 8960 was on his 2023 Taxes and I am trying to replicate the loss. 

      2023 Form 8960 Line 4a is ($37,234.00)

     2023 Form 8960 Line 34 is $37, 234.00  and that loss goes to schedule 1 Line 5.

[SharonAnn]

Thank you.  

[SharonAnn]

It was nonpassive on his 2023 Taxes.

[sjrcpa]

Sounds like that was incorrect.

[SharonAnn]

Thank you  so much.    I was thinking  the same thing.