Skip to main content
Level 3
June 17, 2024
Question

Carry Forward Losses on active Rental Income from Partnership.

  • June 17, 2024
  • 2 replies
  • 13 views

I have a client with a rental property being reported on 1065 because 2 brothers own the property. The property generated losses, however the tax payer does not qualify to claim those losses due to high income. My question is how do the suspended losses get tracked in the program in the case they sell the property so we use the suspended losses against capital gains? 

This topic has been closed for replies.

2 replies

Taxes-by-Rocky
Level 7
June 17, 2024

Form 1065 K-1 Worksheet; Box 2 for RRE.  See check boxes for Box 2.  [Presumably, the program should do the rest....but you'll want to check.]

TSW Author
Level 3
June 19, 2024

I don't see a box 2 on the K-1 worksheet, are you talking about Line 2 on the actual K-1, (Net Real Estate Income)?

Level 15
June 17, 2024

It is limited on the 1040.  On the K-1 worksheet under line 21 and on Form 8582.