Why is T/T home and business only showing our S Corp losses but not those for our LLC when I input the info from both K-1s?

[CathiM · Accepted solution]

Check to see if you have "basis" in the LLC.  If the LLC is a partnership, look on the 1065 K-1 at the bottom left, section L.  Your ending capital balance has to be at least as much as the losses to be able to use them.  

You must go into the Sch E worksheet to put in your basis, so TurboTax will know.  Use the forms mode, in Windows version of TurboTax of the top right of your screen.  Find and click on Sch E page 2 on the left of your screen.  At the top of Sch E page 2, click on the Quickzoom next to Partnership. Add a work sheet, name it. When the worksheet opens, go to the "L" section and put in your basis (capital balances).  You have to have a positive amount in the ending capital balance box to be able to use the loss.  I attached 2 screen shots at the bottom here.

The equity also has to be "at-risk". Section 465(b)(1) provides that a taxpayer is considered at risk for an activity with respect to the amount of money and the adjusted basis of other property contributed by the taxpayer to the activity and for certain amounts borrowed with respect to the activity.  The K-1 should say if the basis is "at-risk".  Let me know if you have questions.