@luckyaces09 NO NO NO if the k-1 is showing a loss you must have tax basis for the loss the be allowed. your wages have nothing to do with your tax basis. your wages can be fully taxable but none of your k-1 loss may b deuctible. Consult a tax pro, we can see your return and a negative number in box F gives us pause as to what your basis is
over simplified example
revenue $100
salary $60
other expenses $50
k-1 loss $10
balance sheet cash overdraft $10
retained earnings deficit of $10
M-1 lines 1 and 8 show a loss of $10
M-2 column a line 4 and 8 Could also show a negative $10
in this case the wages are fully taxable but without tax basis the loss is not deductible
