No--the Form 7203 I received from my S-Corp company has nothing in line 35, Part III. My K1 shows a net short-term capital loss on line 7 and a net long-term capital gain on line 8a. The value in line 7 on the K1 is reflected as a loss on line 38, part 3 of the form 7203 and the value in line 8a on the K1 is reflected as a gain on line 3g, part 1, of the form 7203. My K1 doesn't have any ordinary business losses, only ordinary business income, as reflected on line 1 on the K1 and again on line 3a, part 2 of the form 7203.
The bottom line is that the Form 7203 as filled out in TurboTax, is exactly the same as the Form 7203 I received from my company, along with my K1. It should be correct, but TurboTax keeps giving me the error message as I described.
Make sense?
