Business & farm

It is even more confusing.   My K-1 Line 1 = Line 16D.  

 

If I enter into TT the K-1 Line 16D minus $1 than my K-1 Line 1 OBI then the Schedule E Line 28e "X" goes away.  Then if I go back in there and this time type in the 16D amount which is = to Line 1 OBI, the "X" does not return.  So on it's surface it appears to be fine.  

 

The K-1 Line 16D amount is = to the company K-1 Line 1 OBI . 

 

I have never had to "X" Schedule E, Line 28e in all these years and have never filed a form 7203.  

 

Are you suggesting that because I am pulling out the entire OBI as a distribution rather than leaving in my business bank account that I should be check marking Schedule E, Line 28e and filing form 7203 every year?  The IRS has never sent me a letter regarding this so this is all new to me.  Please advise.

 

@PatriciaV