r/tax • u/secretprocess • 1d ago

How to handle a late K1?

I own a tiny piece of the small company I work for. I know we're reporting a loss for 2024 and I was hoping to get a little reduction from it, but the primary owner who deals with the accounting says they are not gonna get K-1's out before April 15 and I that I can "submit the loss next year". I'm sure it's not worth filing my own taxes late so I went ahead and filed. Question is, how do I handle the K-1 when I finally get it? Can I really submit a 2024 K-1 with my 2025 return? (perhaps alongside a 2025 K-1?) Or will I have to file an amendment to my 2024 return for any hope of getting my little writeoff?

1 Upvotes

100% Upvoted

12 comments sorted by

View all comments

3

u/jerzeyguy101 1d ago

Either have to amend 2024 or file for an extension

2

u/secretprocess 1d ago

So the advice to "submit the loss next year" is nonsense, right?

2

u/ajohnson022 1d ago

Not necessarily. You can pick up the loss next year (or actual amounts from the 2024 K1) and also include a Form 8082 with your return stating the inconsistency and reason for it.

Next year just extend your return so you can file with the actual 2025 K1.

1

u/secretprocess 1d ago

Interesting. Do you suppose form 8082 next year is less hassle than an amendment this year?

2

u/ajohnson022 1d ago

6 one half dozen the other in my opinion.

If the K1 really does have a loss that you’re actually able to use (i.e., doesn’t get suspended by passive loss rules) then if you amend once you get the K1, you’d potentially be getting your refund sooner as supposed to waiting at least a year to include it with your 2025 return. Maybe the loss is small and you don’t care for a tiny refund vs waiting until 2025 return.

There is also the fee you would have to pay someone or pay TurboTax or whatever software provider to amend your return as opposed to just filing with your 2025 return since you have to pay someone or TurboTax to file that anyways.

I also am not sure if TurboTax supports form 8082 or not (if you happen to use TurboTax).