Question

Schedule E Page 2 - "PYA" - Prior Year Unallowed Losses

Accepted Answer

Losses Not Allowed in Prior Years Due to Basis Limitations (nonpassive):

Enter your total prior year unallowed losses that are now deductible on a separate, line in Column (I) of Line 28. Do not combine these losses with, or net them against, any current year amounts from the partnership or S corporation.
Enter “PYA” in Column (A) of the same line.

To accomplish this in the TaxAct^® program, you would enter a separate K-1 for the business. Enter the EIN as it is on the Schedule K-1 already entered for that Partnership or S Corporation. Enter "PYA" for the Name so that is reflected in Column A of Line 28 of Schedule E (Form 1040) Supplemental Income and Loss on page 2. The only amount entered on this K-1 would be in Box 1 and would be the amount of Prior Year Loss allowed to be taken in this year (entered as a negative amount).

Prior Year Unallowed Losses From a Passive Activity Not Reported on Form 8582 Passive Activity Loss Limitations:

Enter on a separate line in Column (G) of Line 28, your total prior year unallowed losses not reported on Form 8582. Losses include prior year unallowed losses that are now deductible because you did not have an overall loss from all passive activities or you disposed of your entire interest in a passive activity in a fully taxable transaction. Do not combine these losses with, or net them against, any current year amounts from the partnership or S corporation.
Enter “PYA” in Column (A) of the same line.

To accomplish this in the TaxAct program, you would enter a separate K-1 for the business. Enter the EIN as it is on the Schedule K-1 already entered for that Partnership or S Corporation. Enter "PYA" for the Name so that is reflected in Column A of Line 28 of Schedule E page 2. The only amount entered on this K-1 would be in Box 1 and would be the amount of Prior Year Loss allowed to be taken in this year (entered as a negative amount).

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.