Question

K-1 for Estate prompted questions about Passive Loss carryover & Income Bus carryover

Forum|Forum|2 years ago
March 23, 2024
1 reply
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Hello, I received a K-1 from my aunt's Estate. After I entered the information for the K-1, I got questions about Passive Loss Carryover and Income Business Carryover. I asked the CPA that did the taxes for my aunt's estate and she said "I can’t comment on the other components of your return. But this K-1 would not have any effect on your passive loss or qualified business income carryovers – if you have any."

Why did I get these questions in TurboTax? I don't know what to enter and don't understand what prompted the questions if there is nothing needed to enter from the Estate.

Please assist me. The only other thing I can think of as to why these questions popped up is that I started working from home part-time as a contractor last September 2023. I'm only working as a contractor from home for about 7 days out of the month. Could this be why I got those questions about passive loss and income business? Either way, what do I do because I wouldn't know what values to enter to answer those questions. I'm using TurboTax Home and Business for desktop.

THANK YOU!

Kim

D

DianeW777

Yes, The contractor work is exactly why the questions popped up. As a self employed contractor you have income that is automatically considered as qualified business income (QBI). Since 2023 is your first year then you do not have any QBI carryover losses. Answer no to those questions, but be sure to answer 'Yes' to your business income being QBI.

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K

kjt8Author

Hi,

I appreciate your reply and that information. I think I understand. Just to clarify though: when turbotax gave me the questions about Passive loss carryover and income business carryover it wasn't a yes or no questions - they are asking me to enter amounts. Do I just enter zero or move forward?

Lastly, you are saying that if I continue to work from home part-time then next year I should be entering amounts in the passive loss carryover and income business carryover questions - correct? If so, I hope I understand at that time what to enter. Ugh, taxes! They've usually been easy for me but maybe I should have had someone do them for me this year.

Thank you, again, in advance.

Kim