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Updated almost 8 years ago on . Most recent reply

User Stats

13
Posts
2
Votes
John Pak
  • Burke, VA
2
Votes |
13
Posts

Is "income" from an Estate Schedule K-1 (line 5) passive?

John Pak
  • Burke, VA
Posted

Dear wife's beloved aunt passed away and she inherited a small portion of the aunt's retirement TSA (tax sheltered annuity), which I understand is similar to a 403(b). Line 5 of the Estate Schedule K-1 (from form 1041) says it's "other portfolio and nonbusiness income."  Does this mean that this is passive or non-passive?  Because if it were passive, I was wondering if I could use our carryover passive activity loss from our real estate rentals (we do active participation but cannot use the PAL against regular income due to income limit).  In filling out the data from the Schedule K-1, TurboTax is asking me whether I have passive activity loss carrovers in Regular Tax and AMT.  Of course I do, but I am concerned that I might be mixing different category of income with PAL from real estate rentals.    

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