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Unable to Take Real Estate Losses from Imported 1065 K-1 on Building Depreciation (Form 1040)

Level 3

Taxpayer is amending form 1040 based on a revised K-1 from a 1065 for additional real estate depreciation as a result of a cost segregation study.

The 1040 is not allowing the loss. I understand it could be a basis or capital account issue, but cannot confirm.

What are some of the buttons / checkboxes / considerations that would prevent the loss from flowing through?

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2 Comments 2
Level 15

Passive loss limitations. Look at Form 8582 and its worksheets.

Level 15

"1040 is not allowing the loss..would prevent the loss from flowing through"

Clarifying, then: That specific type of loss isn't being used. It's not an issue of flowing. It's an issue of how the tax regulations treat it. Do you see it should be treated otherwise in your review of that return?

"Level Up" is a gaming function, not a real life function.
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