Follow up responses:
- Zero on line 1 and the K-1 being negative are mutually exclusive. One has nothing to do with the other.
- Line 1 is your stock basis at the beginning of the year. Nothing else.
- Debts don't go in Part III. This is for loss items or deductions. Maybe you just used the wrong word in describing what you are entering in Part III.
- Do not enter any income in Part II. That is not where it should go.
- What line items do you have reflecting income or gain in Part I?
- In general terms, explain the following:
- What was your beginning of the year stock basis?
- What was the total of your positive items; income, gain, etc?
- What was the total of your loss items or deductions?
- I am going to tag @Anonymous_ to see if he is aware of any issues with this form
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
