I have a question regarding the Note (Do not enter a loss amount that is more than your basis) in the interview question for K-1 Box 1 - Ordinary Income or Loss.
Which basis should be used here? I assume it is the end-of-tax-year adjusted basis that I am responsible for maintaining?
I am a passive partner in this LLC with all of my investment at-risk. Assume I have a calculated year-end basis of $1000 and K-1 Box 1 loss of $3000. I would enter $1000 for the K-1 Box 1 - Ordinary Income or Loss in TurboTax, correct? What does TurboTax do with the remaining $2000 loss? Does this $2000 not get suspended due to the basis limitation?
