My husband and I are the sole shareholders of our S corp. Last year we had our accountant do both our business and personal returns. On our personal return, Schedule E, Part II Loss from S Corp, item 28(e) the boxes are checked for "Check if basis computation is required" and then the return also has a document titled "General Elections"... "Pursuant to IRC 1.1367-1(G), taxpayer elects to reduce basis by losses and deductions before nondeductible expenses and oil and gas depletion. Taxpayer agrees to carry over to the succeeding year the nondeductible, noncapital expenses and oil and gas depletions deductions that exceed stock and debt basis."
This year we want to do our own personal taxes (accountant still doing the business return). We have our K-1's and again we have a loss this year, as we did last year. I've entered everything into Turbo from the K-1. However, the Schedule E that Turbo produced, the box is not checked on item 28(e) and there is no election document included with the return.
I don't understand what any of this means, and I don't know how to make TT check the box on item 28(e) of Schedule E and / or create the "General Elections" page.
I looked up the referenced regulation (IRC 1/1367-1(G)), and it says once elected, this choice must always be elected. HELP! 🙂
