Schedule K-1

kazinaz · Post by **kazinaz** » Tue Jul 17, 2012 11:28 am

I am a US citizen living/working in Canada. I am a partner in a US partnership that develops land subdivisions. I recieved a Schedule K-1 from the partnership with a loss in box 1. I was advised to treat this the same as a canadian partnership and I think it went on line 122. Now CRA is asking me to prove that it should be entered on the return. I am sure they would have had no problem with it if the amount wasnt a large loss and I had made money.
What part of the tax code should I be quoting so they allow the loss?

Thanks!
Kaz

JGCA · Post by **JGCA** » Sun Jul 22, 2012 4:43 am

Since you are a US citizen and you file 1040 returns each year, I would simply send them a copy of your 1040 that should be sufficient along with all the k1 information already sent in.