Urgent - foreign partners

[spei]

Please help! If there was no income and only loss for the first year filing (Form 1065), and a foreign partner had no other income but this k-1 loss, can a foreign partner carry this loss to next year filing and how?

Thanks for the help!

[Koss]

Foreign Partner?

Need a lot more info to answer your question.

Is the foreign partner an individual or a business entity?

Have they ever filed a US tax return before? If not, they should apply for an ITIN or an EIN.

Is the partner active or passive?

If the partner is an individual, then--

if the partner is active, then they may have a net operating loss, which they can carry forward by waiving the carryback period.

if the partner is passive, then the loss will get carried forward under the passive activity loss rules, using Form 8582.

But I am making a lot of very dangerous assumptions here. An individual nonresident alien living in the US may be treated as a resident alien for tax purposes under certain circumstances. You need to get more details.

Here's a partial, abbreviated answer to your original question: Most items on Schedule K-1 can be reported on Form 1040-NR, or on Schedule E, which then flows to Form 1040-NR. The reporting should not be very different from that of a US Citizen.

BMK


BMK