How can I enter prior years unallowed passive loss in a 1040 return?
You would enter a prior year unallowed passive operating loss in the Prior unallowed passive operating box located on the activity to which it applies, such as the:
- C screen for a Schedule C loss
- Starting in Drake19, the Prior unallowed passive operating box is located on the Carryovers/State Info tab.
- E screen for a Schedule E loss
- F screen for a Schedule F loss
- Starting in Drake19, the Prior unallowed passive operating box is located on the Carryovers/State Info tab.
- K1P screen for a loss reported on a K-1 from a Partnership
- K1F screen for a loss reported on a K-1 from a Fiduciary
- K1S screen for a loss reported on a K-1 from an S Corp
Other data entry points are located on screen E2 - Partnerships and S-Corps, and screen E3 - Estates and Trusts. On both screens, the data entry points are located under the heading of Passive Activity Information.