Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

EFLA question - net income from EFLA partnership was

Customer Question
reported on Line K-1, Line...
EFLA question - net income from EFLA partnership was reported on Line K-1, Line 11 as $50,000 and is made up of interest, cap gains, section 988, expenses, etc. Of that amount, $30,000 is recharacterized as nonpassive income. My question is how does the remaining nonpassive piece of $20,000 get reported? Does the nonpassive piece all go on Sch E to offset other passive losses or is it broken out and reported as interest income, cap gains etc ?
Submitted: 6 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 17 hours by:
11/30/2017
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 6 months ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,233
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and would love to help you out with this.

If you have interest, cap gains, etc, they need to be reported on the proper schedule. For example, interest will go to Sch B and capital gains will go to Schedule D.

The second issue is the passive/non-passive and how to report that. You'll use Form 8525 worksheet 3. Remember with passive items, passive losses can only offset passive income. Worksheet 3 will allow you to track what portion of those items on line 11 are passive income items, which will then allow you to offset passive income. If you have no passive losses, then the passive income is always reportable.

I hope that helps. Let me know if you need any more help on this. If not, please leave a rating! Thanks!

Ask Your Own Tax Question
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 6 months ago

Just wanted to circle back and check if you had any other questions. If your question has been answered, please leave a rating! Thanks.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Carter McBride Your Own Question
Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,233
1,233 Satisfied Customers
Experience: Adjunct Professor

Carter McBride is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Passive Income / Loss 1. Taxpayer has several K1s - some
Passive Income / Loss1. Taxpayer has several K1s - some passive activity and some active - and also Sch E pg 1 rental property. 2. For 2017, the passive activity has an accumulated loss. 3. Taxpayer a… read more
Alexander Efros
Alexander Efros
Masters of Business Administration (MBA)
42 satisfied customers
I need to file a capital gains/loss form for 2016 and 2017
I need to file a capital gains/loss form for 2016 and 2017 which will effect the forms for each year. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I need help with a Schedule D form for 2016. It's about farm
It's about farm land I sold. The property was inherited. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
IRS tax question: Say my income before capital gains is
IRS tax question: Say my income before capital gains is $400,000 and after capital gains is $250,000, do the capital gains get 20% treatment and the rest of the income get the lower treatment from $0-… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
I cant find a form 1041 Schedule G and Schedule D says enter
I cant find a form 1041 Schedule G and Schedule D says enter my Tax on all taxable income on Form 1041, Schedule G, Line 1a … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
I filled in the wrong amount for my spouses net income. I
I filled in the wrong amount for my spouses net income. I was about $30.00 low, and it doesn't change his tax bracket. do I have to do anything about it? … read more
abci168
abci168
Principal
27 satisfied customers
I have a question relating to Schedule D and calculation of
I have a question relating to Schedule D and calculation of capital gains and property depreciation on a home sale in 2017 … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,385 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,270 satisfied customers
How do you decide whether to use schedule d worksheet versus
how do you decide whether to use schedule d worksheet versus line 44 work sheet in 1040 instructions … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
On MD state form, you said Md net income was $12k+; last
on MD state form, you said Md net income was $12k+; last yr's form (2106) sd $27k+.. saw nowhere to compare or correct. Husband died 9/15/16. My first time filing single in over 30 yrs. Question was a… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
A partnership sold their royalty interest. Several of the
A partnership sold their royalty interest. Several of the partners have passed away during the years so their interests have passed to their heirs. I don't have the basis of each partner's share assum… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
My 2017 self employment net income was $52,651 and my wife's
My 2017 self employment net income was $52,651 and my wife's was $6,714. How much can I shelter in my IRA?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question about active vs passive income for rental
I have a question about active vs passive income for rental real estate. I own a personal residence that I have rent out for $1000 a month. If I end of having a loss for the year I can take up $25,000… read more
Carter McBride
Carter McBride
Certified Public Accountant (CPA)
1,233 satisfied customers
I don't know how to fill out the schedule d tax worksheet or
I don't know how to fill out the schedule d tax worksheet or qualified dividends and capital gain tax worksheet … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm working on capital gains. Where on the form 8949 do you
i'm working on capital gains. Where on the form 8949 do you list an x that is a noncovered security … read more
taxmanrog
taxmanrog
Master\u0027s Degree
973 satisfied customers
Is there a capital gain rate for corporations or the
HiIs there a capital gain rate for corporations or the corporation is taxed at the 21% rate as ordinary income ? In other words? if the crop earns only passive income then is it still the 21% tax brac… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,385 satisfied customers
On form 1041, capital gains have to be taxed at the estate
On form 1041, capital gains have to be taxed at the estate level, correct? No distribution deduction may be taken?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
On Form 706 Schedule D, if the proceeds were paid directly
On Form 706 Schedule D, if the proceeds were paid directly to a funeral home to pay for funeral expenses should the face value of the policy be included on this schedule? Also should the funeral expen… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x