This is my first time entering a K-1 for a client is an LP in an investment fund. Is income and capital gains reported on the K-1 typically passive or non-passive?

Forum|Forum|3 years ago
October 7, 2022
1 reply
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Proconnect has two separate entries for capital gains: one designated passive and one not. Which should I use if the K-1 for an investment fund partnership doesn't specify if it is passive or non passive.

Similarly, would you enter Box 11 Code A info on other portfolio Income as passive or non passive for thinks like IRC Sec 1293 QEF ordinary earnings, Section 988 Gain and other portfolio income?

ProConnect Tax

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sjrcpa

Level 15

It is probably portfolio/investment income.

Do you have all of the "supplemental" stuff that came with the K-1?

Or is this a group of friends that formed an investment club?

The more I know the more I don’t know.

L

LTankAuthor

Level 2

These are investments in professional managed funds. Client is not active in management. I have the complete K-1 package with footnotes. Client has more that one K-1 of this nature. One of them spells out some of the boxes that are passive v. non passive. The others do not.

How do you identify this K-1s as in investment/portfolio income in Proconnect so the info flows to proper schedules?

PhoebeRoberts

Intuit Community Champion

I call everything portfolio unless the footnotes specify something is passive. "Other nonpassive" is a fine place to put it if it doesn't obviously belong somewhere else.

I have an Excel file that adds up how much should end up on what lines of the tax return, without which I would never have any faith that my input got the right output, particularly when it comes to NIIT and QBI.

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