in Turbotax as part of the k-1 entries, you would check the box that some of your investment is not at risk and complete form 6198 either part II or Part III. it appears that the entries on the 7203 do not limit your loss to basis. the 6198 is required to do this. Turbotax will carryforward the disallowed loss to next year
form 7203 is required because you are reporting a loss. no info carries to this form from other forms like the k-1 and 6198. why both - since essentially they report the same info. well TurboTax only uses the 6198 but the IRS wants form 7203 which may contain more detailed info.
