For PA practitioners or those knowledgeable of PA taxes.
I have a return with a K1 reporting a loss. The taxpayer has material participation.
He is a PA resident but has a NRK1, as partnership is based in DE. I do not believe a PA return was filed if that matters.
I cannot get the loss to flow through against his wage income. I have entered his % of profits, losses and capital. I marked material participation in the federal form, if this even matters.
He is MFJ and total income is about $770k. Is this an income limitation? Is it just that he can't deduct this loss against other types of income? Or is there something I am missing?
I fear it may be that he can't deduct it at all, but I want to make sure before delivering the return.
Best Answer Click here
For PA you cannot deduct a loss in one income category against a loss in another category. The only way to deduct a loss is to have income from a K-1.
Dusty
wompwahh. thanks
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