Thank you, the link to the IRS website definitely helped with my understanding of basis. Your first sentence mentioned we should report the K-1 exactly as it was prepared, however, in the program when it asks for your business income or loss (what is in Box 1) it says not to put a loss amount that is more than your basis. If I were to enter our allowed loss of ($5,546) in that section, it wouldn't match what is in Box 1 of our K-1, but apparently is the correct amount to enter based on our basis, is this okay? I went through the rest of the K-1 section in TurboTax and didn't see anywhere to input basis calculation information, so I feel like if I enter our total loss of ($6,565) that would be incorrect because we are not allowed that entire loss for this tax year.
