"Basis Loss" carryovers when converting to TurboTax

[Jim202010]

I'm converting to TurboTax and starting from a "preparer's return" version of the 2018 tax return that I got from the 2018 tax preparer.

That document lists a number of carryovers including "Basis Losses" that appear to be associated with a Schedule K-1 from a partnership.

I can't find any corresponding place to put this carryover in TurboTax.

Suggestions?

[M-MTax]

You don't need to enter basis info into TT or any program.....keep for your records when you sell your share.....other carry overs are put in when you enter your k1 info.

[Jim202010]

Thanks!  Yes, there is a modest passive loss carryover as well, separate from the "basis loss".

I still don't understand what a "basis loss" is and how the basis limitation is determined...

Looking at the flows, it appears that the preparer converted ordinary losses into "basis losses" due to some sort of basis limitation.  The entity is an LLC and not an S corp , though.

[Critter-3]

Do you have a form 8582 in the 2018 return ?

[Jim202010 · Accepted solution]

[Edited for clarity]

Yes.  The 2018 form 8582 one has a passive loss calculation and an allocation.

With  little more digging into previous years, my belief is that:

• The LLC generated more losses than I paid (my original basis is what I paid)
• The passive loss carryover from previous years is limited to my original basis
• The preparer copy of the return states the "basis loss" carryover with a worksheet
• I infer that the basis loss is tracked in the version of software that my preparer uses but that TurboTax does not track this as mentioned in this post [1]
• From the 1st reply above, I don't need to report this basis loss but rather should just take a note of it in an external supporting spreadsheet that I keep around.

Does this sound right?

Perhaps I should add an informational statement to the return mentioning that activity has a basis loss (and AMT basis loss that is equal) just for completeness?  Where would that go?

  No, just keep track of it locally.

Would that make my return not electronically fileable?

  Yes,  It would make the return not electronically fileable. 

[1] https://proconnect.intuit.com/community/proseries-tax-idea-exchange/basis-limitation-worksheet-on-10...

[Jim202010]

Digging through all the statements from the 2018 return, I did indeed find the basis loss limitation worksheet and can find no reference in TurboTax for creating one.

Further, there is a request in the "pro series" asking to add such a feature.  The topic is "Basis Limitation Worksheet on 1040" [1].

I plan to extract those calculations into a separate PDF to document it and carry it forward to future years.

The remaining question is whether to attach a statement to the return mentioning the "basis loss carryforwards" and if so, where it would best be attached?  (Sorry, I'm very new to TurboTax)

[1] https://proconnect.intuit.com/community/proseries-tax-idea-exchange/basis-limitation-worksheet-on-10...

[Critter-3]

Worksheets are for your use only and are only informational ... this is nothing that is ever reported on a tax return which is why the TT DIY online program  doesn't handle this situation.   When using the Downloaded version you can add supporting details and worksheets which still are not sent to the IRS.  In your situation I would simply keep the info with your K-1 files until you get rid of the underlying investment. 

[Jim202010]

Thank you.  I will just track this separately for the life of the asset.