FORM 7203

eemr19841 — Fri, 07 Apr 2023 06:49:58 GMT

When completing form 7203 for Scorp i currently have a loss which exceeds my stock basis. When i completed form 7203 it says that i have a carry over but when reviewing schedule E it shows the full entire loss and not the amount allowed based on stock basis. I have tried to fix it but it looks like the only way is to override it and just change the loss amount on schedule E. How can i resolve this issue?

Re: FORM 7203

Mike9241 — Fri, 07 Apr 2023 07:56:48 GMT

As stupid as this may sound Turbotax has not programmed the form to disallow losses in excess of basis. I guess the only reason they have it because the IRS demands it under certain conditions. If you override you won't be able to e-file. the only you can limit your loss is to use form 6198. as you go thru entering k-1 info it should ask about at-risk. probably chose the simplified method. adjusted basis 1/1 same as you used for 7203. increase ? enter amount if any this would include any loans you made to it or capital contributions. decreases? losses and distributions loan repayments (note that any distributions in excess of basis are taxable and if you have made loans that have absorbed losses repayment will result in taxable income - turbotax really can't handle these situations) .

you should see on schedule E only the allowable loss.

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FORM 7203

Re: FORM 7203