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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29966
Experience:  Taxes, Immigration, Labor Relations
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I am having a partnership with a company, the company has

Customer Question

I am having a partnership with a company, the company has loss in this tax year. Do I need to file a K1 report?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

If there is a partnership - that partnership MUST file the tax return - form 1065 and should issue K1 forms to each partner.
A partnership is the relationship existing between two or more persons/entities who join to carry on a trade or business. Each person/entity contributes money, property, labor or skill, and expects to share in the profits and losses of the business.Partnership should issue schedules K-1 to each partner reporting pro-rata share of net taxable income (or loss) -

Some additional information about partnerships may be found in IRS Publication 541 -

Then - if there are two partners - you as a physical person and the corporation - each will receive K1 form - and will use information from that form to prepare your individual tax return.

Customer: replied 1 year ago.
I filed the K1 and entered the loss. But it appeared Nothing changed in tax return. It means there is no deduction from the loss. Why? I am using Taxact online.
Expert:  Lev replied 1 year ago.

If you actively participated in the partnership - the loss is fully used to offset other taxable income.

It is hard to say what exactly you entered into your tax preparation software.
I will help to verify your tax return - if you send K1 and tax forms.
Be sure to remove all personal information.

Customer: replied 1 year ago.
I am not matially participant not a rental professional for the company. Can I get deduction?
Expert:  Lev replied 1 year ago.

If you did NOT actively participated in the partnership - that is passive activity and the loss is a passive loss which may be fully used only to offset other passive income.

Expert:  Lev replied 1 year ago.

But again - to verify that we need to see your K1 and tax return.
Specifically - you would need to locate form 8582 and verify if passive loss limitation is the reason for you not see that loss on your tax return.

If that is true - passive losses are carried forward and will be used in future years against other passive gains.