OK, I am sufficiently confused. My business accountant says, for Sch E:
"Like I said, I have a check box that says allow a loss to partnership or S Corps and Input it there. Not sure about TurboTax" and
"Should lower the income reported on the K-1. Ordinary income."
You guys say Sch D, but I can't tell where to put them and TT doesn't prompt me to add them anywhere. Plus, the expenses would go against cap gains, not income, as they should. The sale was an asset sale so part of proceeds added to ordinary income and some went to cap gains. Typically expenses go against ordinary income, so sch E makes sense to me. Since Part II of sch E is for Partnerships and S-corps is it possible that the expenses allowed for Partnerships is also allowable for S-corps and that is why his tax program notates that?
Sorry - I'm just really confused!!
