K-1, Rental, Business and Farm Activity Pre-2018 Suspended Loss Carryforwards

Pre-2018 Suspended Loss Carryforward

-This amount represents the pre-2018 suspended loss carryover from 2018 to 2019 for each asset. This amount was not retained from the 2018 tax return compute.

To help reduce the amount of input required for these carryover amounts, pre-2018 loss carryover fields in tax year 2019 were populated for each of these activities with the lesser of the following values:

This determination of suspended losses should be accurate for publicly traded partnerships (PTPs); however, it may not provide accurate results for other types of activities (such as non-PTP K-1, rental, business and farm activities) if the

Passive/Active Type

drop-down list was set to

Passive

. For non-PTP activities, the amounts should be accurate unless both suspended losses from 2017 to 2018 and suspended losses from 2018 to 2019 exist.

If there were non-PTP activities with both suspended losses from 2017 to 2018 and suspended losses from 2018 to 2019, the populated loss amounts may be incorrect and should be confirmed with analysis of the 2018 print file using the Section 199A-Loss Detail statement as indicated in the example below.

As shown in the following graphic, the

Suspended Losses

collapsible section from tax year 2018 for Partnership 1 shows suspended losses from 2017 to 2018 of $1,100 (1,000 + 100) and suspended losses from 2018 to 2019 of $500:

Under the

Section 199A-Qualified Business Income

collapsible section in tax year 2019, the

Pre-2018 Suspended Loss from Prior Year (Enter as positive number)

field contains a value of $500:

The Section 199A-Loss Detail statement of the 2018 tax return reports the pre-2018 suspended loss (if any) for each activity. For ESBT accounts, a separate detail statement is also generated for the S portion of ESBT. Examples of these statements are shown in the graphics below.

If there were non-PTP activities with both suspended losses from 2017 to 2018 and suspended losses from 2018 to 2019, the populated loss amounts may be incorrect and should be confirmed with analysis of the 2018 print file using the Section 199A-Loss Detail statement. In the example below, there was $300 of suspended loss from the 2017 return and $500 of suspended loss from the 2018 return. In this scenario, populating the tax year 2019 loss field with the lesser of these values as the pre-2018 suspended loss from 2018 to 2019 may be incorrect. Consequently, the Section 199A-Loss Detail statement in the 2018 tax return must be reviewed.

The amount in the

Pre-2018 Suspended Loss from Prior Year (Enter as a positive number)

field should be the same as amount reported for this activity on the Section 199A-Loss Detail statement of the 2018 tax return. If the amounts do not match (as in this example), enter the amount from the statement in the

Pre-2018 Suspended Loss from Prior Year (Enter as a positive number)

field. Entering the amount from the statement in this field overrides the populated amount.

Since the statement indicates that no pre-2018 suspended loss was suspended (it was all allowed against 2018 passive income), then $0.00 should be entered as shown in the following graphic: