Level 3

Question

How to take a Loss on K1 ,form 8960

Forum|Forum|1 year ago
May 8, 2025
3 replies
19 views

I have a new 2024 client that had a K1 loss in 2023 that showed up on a form 8960 and that loss carried over to the Schedule 1 line 5, lowering their taxable income.

I cannot get Pro Series to show the same loss on their 2024 Taxes. I need to have Nonpassive income not Passive.

Thank you in advance 🙂

ProSeries Professional

This topic has been closed for replies.

sjrcpa

Level 15

What makes it nonpassive?

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

SharonAnnAuthor

Level 3

It was nonpassive on his 2023 Taxes.

sjrcpa

Level 15

Sounds like that was incorrect.

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

T

TaxGuyBill

Level 15

I'm not sure why you are mentioning Form 8960 because that has nothing to do with claiming a loss.

What kind of K-1 is it?
Is the loss in Box 1, Box 2, or something else?
Does the client have enough Basis to claim the loss?
Does the client Materially Participate in the activity (and if so, did you check that box)?

SharonAnnAuthor

Level 3

K1 is 1065 Partnership.

Loss is in Box 2 on K1

The client does not materially participate.

I guess his 2023 could be incorrect. The form 8960 was on his 2023 Taxes and I am trying to replicate the loss.

2023 Form 8960 Line 4a is ($37,234.00)

2023 Form 8960 Line 34 is $37, 234.00 and that loss goes to schedule 1 Line 5.

George4Tacks

Level 15

Create a duplicate, but NonPassive K-1. Input any NonPassive into it. Pain in the patootie, but that's how PS handles it.

Answers are easy. Questions are hard!

SharonAnnAuthor

Level 3

Thank you.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded