I believe there is an error in how the form 7203 is checking itself. Line 3a states "Ordinary business income (enter losses in Part III)". Unless I'm missing something (entirely possible since we are talking accounting here) this literally means you CAN have a gain on line 3a AND a loss in Part III. That's the whole purpose of Part III. Yet if you do have a gain (I did) and do have a loss (I had a small deduction which gets entered into Part III) then you get an error and are not allowed to e-file your taxes. Hopefully someone will either fix this or maybe point out how you can in fact have a gain and report a loss in Part III correctly?
To anyone with the same issue that just wants to file their taxes (and NO I am NOT an accountant and you should for sure NOT take my advice on anything especially taxes)... I deleted everything in Part III (not put a 0 literally delete every blank so nothing is there). I then went to line 6 and just added my deduction to that line so my stock basis (line 15) would still read correctly. THEN (and this is an important step) DO NOT forget to hit the RECALCULATE button at the bottom. Let it put 0's where it wants them and fix any math errors. Now you can double check the numbers and hopefully your line 15 should read the same as it does on your K-1 form. Doing this got me the correct Stock Basis amount and finally I was able to e-file without the error that cost me an hour of my life.
