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Discussion:K-1 pass thru of property casualty loss Form 4684 to partners

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Discussion Forum Index --> Basic Tax Questions --> K-1 pass thru of property casualty loss Form 4684 to partners


Discussion Forum Index --> Tax Questions --> K-1 pass thru of property casualty loss Form 4684 to partners

Illini (talk|edits) said:

10 April 2013
First time occurrence: K-1 pass thru of property casualty loss from Form 4684 to partners -- a small $1,000 casualty loss is passed through to my client on their K-1 -- I assume the "qualification" to deduct it is done at the individual level, or should it have been done at the entity level (Form 1065)? If at the individual level, I won't even bother trying to enter it into my software, since it will be rejected.

Podolin (talk|edits) said:

10 April 2013
1065 says it goes on Sch K, line 11, which means it is separately reported on the k-1. Still, it is a business casualty loss on the 1040. Don't business casualty losses go above the AGI line?

Illini (talk|edits) said:

10 April 2013
That's why I asked -- I was not aware of that and of course, my software does not have a clean interface between the K-1 item and the casualty loss. So you are saying the loss may go on line 21 misc. of the 1040 because it is a business casualty loss and no need to file Form 4684 on the 1040?

Illini (talk|edits) said:

10 April 2013
Thank you so much -- had to manually enter it into dispositions which flows into 4864 part B, which flows to Form 4797 for the deduction. Thank you!

Podolin (talk|edits) said:

10 April 2013
See the right hand column of page i5 of this http://www.irs.gov/pub/irs-pdf/p547.pdf I think the 4684 is at the partnership level, but you need to determine holding period, etc. Frankly, for the amount you state, I'd probably just put it on Line 21 as a loss with a description "Business casualty loss from partnership X K-1".

Illini (talk|edits) said:

10 April 2013
I actually noted the K-1 EIN on the 4684 with the 1040.

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