TurboTax does not track the limit to losses because of basis. This is something you have to do manually.
If you are using the CD/Download version of TurboTax, you can enter the at risk loss carryover in Forms Mode, using these steps:
- Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar.
- In the Forms in My Return list on the left, click on the form you wish to open -- K-1 S-Corp [name].
- The form will appear in the screen on the right.
- Scroll down to Section A (below line 17).
- Enter the loss carryover on line 1a, column (b). Enter as a negative number,
- This number will flow to Schedule E, p. 2, with the notation PYA-- there are allowed losses that were previously disallowed due to at-risk limitations
- To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.
If you are using TurboTax Online, adjust the amount on line 1 of the K-1 to account for the loss carryover applied to income.
@andrewz
