The TurboTax has an issue for handling K-1 in form 7203, in following case:
-- K-1 (from S-Corp) reports a loss in Box-1 ($3,000 for example).
-- The allowable loss ($2,000 for example) from "Stock Basis" is smaller than the loss reported in K-1 Box-1.
The Turbo Tax calculates correctly. However, the software asks user to manually enter the "Deduction Amount" (up-to the allowable loss from the "Stock Basis"), after all data (for 7203) have been entered. Once user changes the deduction amount to the allowable loss (i.e., $2,000 in my pseudo-example), TurboTax would change the K-1 Box-1 amount to the deduction amount (one can view K-1 form on Form View). If I don't modify the deduction amount manually, however, the software would take the entire loss (i.e., $3,000 in my pseudo-example) as the deduction amount.
