How do you adjust for disallowed passive losses from partnerships on schedule NR

Feb 14, 2013 0 Replies

The instructions to Schedule NR indicate to sum up various amounts from Column B per Form k-1-p received from partnerships. A portion of the Federal loss from the partnership is disallowed on the federal return due to the passive loss rules so the amount in column A on the Schedule NR has been adjusted to reflect the disallowed loss. It seems the Illinois source amount in column B should also be adjusted to reflect the disallowed loss to be consistent with the amount shown on the federal return, however if this adjustement is reflected in Column B of Schedule NR it will not agree with the K-1-p which are required to be attached. Does anyone have any suggestions on how to present this and the subsequent carryover when the federal loss is allowed?


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