Thanks for your detailed and very helpful responses.
I was hoping you, or anyone else, could help.
- After calculating my debt basis for the beginning of the year and manually inputting values into 7203 TurboTax is showing a debt basis before losses (line 29) that is less than my allowable losses from 47(d). These are active losses so they should be allowed.
- When I input the 47(d) loss as a negative number (the instructions say to enter the number from 47(d), which is negative) it is added to my debt basis obviously making it increase.
- If I input the loss on line 30 as a positive number the debt basis goes negative, which I thought shouldn't be allowed.
- That seems wrong to me as I would think your allowable losses would be limited by the debt basis and any allowable losses would reduce the debt basis. Once it hit zero no additional losses would be allowed. Is the TurboTax form wrong, or my assumption?
- Should I:
- input the full number for line 30 allowable losses from 47(d) as negative or
- input 47(d) as a positive number or
- input a positive number equal to the debt basis so the final debt basis is zero?
- Option c seems to be the logical choice, but I'm not a CPA or tax expert.
