I am using both Turbo Tax online and Turbo Tax Home and Business to try to file my taxes. I would like to claim an S-Corp loss that was not allowed in a prior year due to basis limitations. Per the IRS instructions, this requires the use of Form 7203 and Question 27 on Schedule E will need to be checked "yes" prompting additional instructions for Schedule E (since K1 values and Schedule E values will be different).
During the interview portions of both platforms, there is a question about claiming losses not allowed in prior years due to basis limitations. However, if you check "yes," Form 7203 is NOT prompted in order to input carryover amounts from prior years to determine the allowable loss from stock basis.
On the Turbo Tax Home and Business platform, I am able to manually retrieve Form 7203 and input the correct values, but it does not link with Schedule E, so the values on Schedule E are incorrect. I have tried to manually override Schedule E (more specifically Question 28 to input "PYA" and the non passive loss allowed as per IRS instructions), but now the system keeps telling me there is an error, and I cannot e-file the taxes without removing the overridden material.
Please advise!!! I have spent hours trying to get this right, and I believe it is a bug with the programming and not something I am doing wrong. The form has only been required by the IRS for two years now and I think Turbo Tax needs to update the programs.
