@J295 I assume you've verified that you actually have negative basis (not negative capital account). They're different, and I only ask because I've seen this confusion recently and I know EPD allocates nonrecourse liabilities.
As to how to get TT to release losses to offset "Distributions in Excess of Basis", I haven't had to personally try to do that (or to grapple with making sure Form 6198 is doing what its supposed to do) so can't offer step-by-step instructions. I'm not even sure that entering numbers into 9a will work perfectly (K-1 data triggers a lot of different forms and adjustments). My suggestion would be to save a version of your tax file BEFORE adjusting for the excess distribution, then try making adjustments and verify that the AFTER result only changed the correct forms / numbers. Note that you can see how much loss has been released, and the calculations TT is doing, in Forms Mode by looking at Section A of the K-1.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
