2020 Return should program carry K-1 residential rental loss to schedule E? It is not allowing loss

[Terry53029]

What type K1 (1065, 1120S ?) did TP materially participate. Does TP have sufficient basis. You are not charged for extra words, give more details

[Summit1]

1065 K-1 (Initial year)TP and spouse each have a K-1 but there is no rental income, only loss. There is sufficient Capital. Based on some other online searches, it seems they will have to carry the loss forward until they have rental income.

[sjrcpa]

Yes. Passive loss rules. The software is correct.

[sjrcpa]

There should be Form 8582 showing the computations.

[Terry53029]

Do they actively participate in the rental, and if income is < $100,000 they may take loss up to $25,000

[Terry53029]

See this link: https://www.thetaxadviser.com/issues/2010/nov/casestudy-nov10.html

[Summit1]

Taxpayer's Income is well above the $100,000 level. It appears they will need to carry their losses forward until they have rental income to report. 

[PATAX]

Like Terry said if the income is above a certain level even with the appropriate participation you cannot deduct the loss in the current year.... It has been this way for years... 

[PATAX]

Tried to give thumbs up on this post but it wouldn't let me do it... It is either this junky smartphone or this post is not doing what it is supposed to like the Intuit software does sometimes...

[Terry53029]

I also tried to give a thumbs up no luck ???

[Summit1]

Thank you

[Summit1]

Thank you!