Drake Tax - 1040: Prior Unallowed Passive Operating Losses

How to 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.