well, Turbotax has a big problem. in my version (desktop deluxe) the 7203 computes the allowed and disallowed portions of the loss. but then ignores it when doing Form Schedule 1. ARE YOU READING THIS TURBOTAX PROGRAMMER? HOW MANY TAXPAYERS HAVE FILED INCORRECT RETURNS BECAUSE OF THIS?
if you complete the 7203 properly (numbers do not flow automatically to the 7203 YOU READING THIS TURBOTAX PROGRAMMERS) at least in my version so in your example your beginning stock basis would go on line 1 part 1 and the loss entered as a positive number goes in part III line 35. properly complete this will show the allowed and unallowed loss. but as stated this does not work
to explain losses are limited to the lesser of your stock and loan basis or your at-risk amount. often identical but there are many reasons why they may not be.
anyway, for you, there is a workaround
use form 6198 the at-risk form
use your beginning basis which for most is the same as their beginning of the year stock basis and loan basis
the rest is automatic. enter on line 6
