K-1 tax loss question
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My wife and I are partners in a small biz. that made a loss last year. We are 50%- 50% partners. We use IRS form 1065 for this business normally.
In the past we always had profits so I was never faced with this situation.
Questions...
1.Should I transfer 50% of the loss to each of our K-1's? Is that how it works?
2.From the K-1s should I transfer the amount (loss) to the 1040 package?
So if the total loss was $10,000, will this 10,000 loss show up in line 17 of the 1040 form?
Please let me know.
Thanks, Irfan Smith