Form 7203 conflicting information

[DWe]

Thanks again for your help.  Knowing that you also manually adjust K-1S carryforwards makes me feel more confident about also doing it. 

I tried overriding the $0 carryover in this year's K-1S to the actual from the 7203 and it recalculated the allowable loss, so that wasn't a solution.  

Clearly there's an issue with how the new 7203 info flows through the TT K-1S.  Hopefully it will be fixed next year.  My only concern is if some IRS program will flag next year's return due to a discrepancy in the $0 carryforwards shown in this year's K-1S vs. the actuals that I'll put in next year's form.  

[mlohrer]

K-1 information, as you create it in Turbotax, is not transmitted as part of a personal return, K-1 information is only sent to the IRS as part of a company's return, and that will include the individual K-1's as received by you  from the company, and with just the original information, so there is no "discrepancy" in carry forward losses at that level that the IRS will find.

To this point, prior to the introduction of the 7203, there was no formal way for the IRS to track "allowable loss" information, and it was up to individual tax payers to maintain appropriate records, should documentation be required. Moving forward, your carry forward loss will be "trackable" via the 7203, but that should make it easier for taxpayers to be sure they have proper records.

[bamaisone]

My problem is with line 3a of section 1.  I have a value of   -3,267 on my K-1 (1020-S).  Instruction says only enter positive numbers in section l, so I enter 0 and it still highlights that line as being in error.  What am I missing.  I am entering the negative value, 3,267 in section lll.

[mlohrer]

I presume -3267 is your ordinary business loss for the year.

Section I of 7203 deals only with ADDITIONS to basis, which would be business income (NOT loss), so enter NOTHING in section I, remove even the entry "0" by deleting it from the 7203 (easy in forms mode, not sure how in interview mode, I don't use that mode), not sure if that is causing an issue as "0" is not a valid "business income" addition to basis.

Section III deals only with LOSSES you are trying to determine the allowability of. Line 35 Column A is a LOSS entry, so enter POSITIVE 3267, as the form PRESUMES that entry to be a LOSS - seems like you understand that.

The above process is how I have completed 7203's with no errors flagged...

[Gombawi]

I tried Turbo tax e-filing with f7203.  It charged me e-filing fee, but it doesn't work, as of April 6, 2022.  How can I get the fee back?

[AliciaP1]

Can you clarify if you are using an Online version or a Desktop version of TurboTax?

@Gombawi

[Gombawi]

Desktop version.  I also tried e-filing Federal first, but still same problem.  It holds checking f7203 conflicting issue.   -> click continue -> data transmits -> but not working.

[AliciaP1]

It should be available for e-filing.  You may need to update the software.

To check for updates you can follow these steps:

1. Within TurboTax click Online in the black menu bar at the top of the screen
2. Click Check for Updates in the dropdown box
3. Continue installing the updates

@Gombawi

[mlohrer]

This posted within the last day:

"When should I file Form 7203?

SOLVED•by TurboTax•7•Updated 24 hours ago

<snip>....

Note: TurboTax currently doesn't support e-filing Form 7203, so if you are required to fill out this form, you’ll need to print and mail your tax return."

[C3inATL]

WHAT!?!?  Is this true?  If TTax requires me to fill out a form 7203, this will STOP TTax's ability to efile?  TurboTax Premier has free Federal efile EXCEPT WHEN MINE HAS FORM 7203?  Please tell me TT fixed this flaw!

mlohrer wrote:
"Note: TurboTax currently doesn't support e-filing Form 7203, so if you are required to fill out this form, you’ll need to print and mail your tax return."

[tagteam]

According to the forms availability list, e-file with Form 7203 included is supported.

See https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html

[jyleads]

So I have a question about keeping track of your stock basis. Is there a form that helps with this since I haven't been doing it all along I guess I need to go back and figure it out so I have the correct beginning of the year stock basis.

[tagteam]

This has to be done manually.

You have to start with your initial capital contribution (cost of shares) and then review all of your K-1s.

[DWe]

You're right, calculating your stock or loan basis is manual and painful.  Make sure you only subtract allowed losses from your stock or loan basis.  In my case for a rental property my losses were capped so the allowed losses were less than the K-1 losses.

[DWe]

A couple weeks ago I efiled my '21 return and just looked at the saved document.  It included all required 7230 forms so you should be OK.