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#2259183 - 09/02/21 07:10 PM K-1 Losses
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 1,909
As a small creditor is there any ability to ignore losses on a K-1 since the borrower was not required to put money back into the business due to the loss?

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Ability to Repay/Qualified Mortgage Rule
#2259186 - 09/02/21 07:13 PM Re: K-1 Losses terpsfan
Tater Offline
Platinum Poster
Joined: Jan 2006
Posts: 617
Missouri
If you can document that there was no cash impact to the ongoing household and/or that it was an accounting loss but not a cash loss, there should be no reason to charge K-1 losses against an individual. Some business structures show the cash movement in/out per shareholder on the face of the K-1, too.
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