Loss from K-1 reported on a high income return

Forum|Forum|6 years ago
December 7, 2019
13 replies
69 views

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

ProSeries Professional

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Best answer by TaxGuyBill

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

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TaxGuyBill

Which box of the K-1 has a loss?

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pjjjpAuthor

Level 2

Box 1- Ordinary loss from an LLC

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pjjjpAuthor

Level 2

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!!

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garman22

Intuit Community Champion

@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!