Do you agree that there is no “a Reporting a loss” as per the Lacerte article if the 2020 K-1 only has Line 13 Code W-other deductions $40 and Line 20 Code B-Investment expenses $40?

I am asking this because K-1: Part 1 section L-Partner's Capital Account Analysis has Current year net income (loss) in the amount of ($40).

Again thanks for your time!

PhoebeRoberts

Intuit Community Champion

You might have a reportable loss. Is the 13W amount a deductible expense, or is it a misc 2% expense no longer deductible by individuals? Is Schedule E page 2 where you expect the 13W amount to show up, and have you entered it in a field that normally flows to SchEp2? Does the partner have sufficient basis? Sufficient at-risk? Are they active or passive? If passive, what does the 8582 say? Is the partnership a PTP / MLP?

Partnership taxation is not one of those things where you can plunk a number into a box that matches the K-1 and blindly trust that the output is correct.

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