I keep getting errors on my 7203 form when I review and go to file my taxes...our S-Corp had a net gain in Part I, but the only place to calculate allowable deductions (e.g., K-1 line 12 code A for charitable contributions) and have the math for the end of year stock basis work is to use lines in Part III. But the errors (cited for Part I lines 3a, 3b, 3c, 3g, 3h) all say "...cannot have a gain in Part I and a loss in Part III". Every line item matches info in my K-1:
- Line 3a (7203) matches Line 1 (K-1), which is a positive number
- Line 3b (7203) matches Line 2 (K-1), which in this case is 0
- Line 3c (7203) matches Line 3 (K-1), which in this case is 0
- Line 3g (7203) matches the additions of Lines 7,8a,8b, 8c (K-1), which in this case is 0
- Line 3h (7203) matches Line 9 (K-1), which in this case is 0
Is there another way to NOT use Part III and have the math work? Should I just include the amount from Line 12, Code A from my K-1 in Line 13 (Other items that decrease stock basis)?
