I have a client who just received a K-1 on Monday. I am filing an amendment to original return. Also found out that a K-1 was also received in the 2007 tax year and it was issued to the client in June of 2007 and had a passive loss so client didn't mention. My question is this: will I need to go back and amend 2007 return add the K-1, in order to to use the loss against this years K-1? I am assuming so...
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Amendment
Yes, 1040X for both years. -
new info...let's say the K-1 goes back to 2004, never filed because of very small losses. Can I only go back three years (2006) or can I adjust 2004 and 2005 to bring the figures up to date, and then only file 2006,2007,2008?Comment
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I don't have a cite
but my understanding is that you can always amend a return to pay additional tax or to give the taxing agencies information they need and would not otherwise have but that after three years you generally can't get money paid to you or credited to another year's return. I say generally because if you are hard enough up the code contains a provision for letting a refund for a closed year be applied to tax due for another year.Comment
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K-1
What type of K-1 loss? Active Participant, Limited Partner, etc?
SandyComment
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so file amendments for all years, but if any refunds are gained from the changes, only 2006-2008 will be given.
ThanksComment
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passive and limited partnerComment
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I would think
that as passive and limited partner, no losses would be included on the form 1040, but would be carried forward on 8582 form from one year to next and net against any passive income reported via K-1 form.
So calculate back to the first closed years and bring forward for correction and then file your amendments for the open years and corrected form 8582 forms.
SandyComment
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