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Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
What kind of loss did you have exactly? (from what type of activity)
What are the amounts on Lines 15 and 16 of Form 8582?
it's passive loss
Yes, I know that. That is what the form is for. Was this rental real estate or investment in a company or what type of investment loss?
losses are comming from K-1s
OK. Thank you.
And what are the amounts on Lines 15 & 16 please?
And on your Schedule E, Page 2, can you find LIne 29a please
more info regarding what info is on the form 8583
Got it thanks
line 29 on shc E is blank
that is the issue
So what this form is telling us is that you had about $265K in passive POSITIVE income
but we have lossed as well
You had current year losses from passive activities over $1MM, with prior year activities of millions
What Form 8582 is telling you is that the losses allowed are only UP TO the amount of income. The losses OFFSET 100% of current income and no other losses are allowed.
The forms are calculating correctly as you should have NO schedule E income or loss to report flowing to Form 1040 Page 1
one minute let me make sure i understand
The losses can only be released when one of two things happens: 1) an offset against current year passive income (Which is what is happening here) or 2) you SELL the investment that is losing money and realize the capital gain/loss AND the operating losses.
So while Sch E looks like it is totaling to zero, in effect, this is correct.
Those excess losses continue to roll forward.
sorry can youexplain to me more
what sch E does
what info usually go on sch E
in what case my sch E would populate?
Schedule E shows all of the partnerships and S corps (it may need an extra schedule if there are more than 4 total)
Line 30 and Line 31 should be offsetting amount of $265K
Line 32 should be zero
(line 31 is the allowable loss)
by my lines 30 and 31 are blank on sch E
im still not clear why shc E should not populate
That may be a function of your software.
Are there any totals in Line 29a?
sch E is completely blank
sch E should have the ammounts right
since we have millions in losses
and only 245k in income
Is there anything across Lines 28 (A through D)?
Did you have any income OTHER than these K-1's?
There SHOULD be items in lines A-D of 28 on Sch E page 2
This cannot be blank!
no all income comes from k-1s
no entity level activities
i just wanted to make sure that theoretically numbers should be on the Sch E
since 8582 is complted
That is correct. Schedule E needs to have entity information from the K-1s
But, in your case, it will result in no net income or losses
can you plese explain why
Even if there are no numbers int he columns, the list of K-1s should show company names and tax ID numbers
No income or loss because allowable losses exactly offset taxable gains. Not a penny more or a penny less.
im concerned why there are no numbers on line 29_32
There's nothing in Columns (a) through (d)? (Line 28)
what if line 16th of 8582 would show loss
That could only show a loss more than Line 15 IF you sold the investment.
I am concerned about nothing on Line 28.
You may wish to check with your software provider on that.
yes for some reason sch e is completely blank
but aybe it should be blank
It should not based on our conversation so far
since you said losses offset 245k income
What software are you using?
i just looked at another return
That is a professional package, no?
sch E should have ammounts
Yes it should
even if form 8582 shows income and millions in losses
But I do not know the GoSystems software package for tech support purposes.
yes it's a profesional package
Are you a tax preparer or this is a personal return?
i think i will need to contact tech support at this point
something is wrong with the sch E
This is one of those cases where I can tell you what should be on the forms, but I cannot tell you how to make the software give you the right answer. Sorry about that.
yes i just wanted to make sure that i undestand it
bcs tech support already told me that it shouldnt be on the sch E
OK, sorry I could not be of more assistance today
Hang on.....let me just check another source in the rules...
give me 2 mins
Nope, I don't see anything to change my mind about the fact that it should be on Sch E
Even if the amounts total zero, it should be there
OK. Have a good evening.
Thanks! You too!