Figured it out.
Box 11 line 2 on the K1 Addl Info worksheet, which is an input field, needs to equal form 4562 line 12 a ttax calculation. If they do, TTax is happy and the red error problem on form 4562 goes away.
The confusion here is that Box 11 line 2 on the K1 Addl Info worksheet has the following label: "Section 179 deduction allowed per current year Form 4562" and I had input the amount allowed after my basis limitation. As far as I can tell, however, I need to include the sec 179 amount before limitation to keep the program happy.
Is this a shortcoming of the software?
Anyway, Sched E pg 2 is correct, Ttax doesn't think I have any errors in my return, and I have all my carryforward values tracked separately. Should be good to go.
