topic turbo tax s-corp PYA losses combined with current year losses in Get your taxes done using TurboTax

turbo tax s-corp PYA losses combined with current year losses

gretch — Wed, 14 Oct 2020 16:40:30 GMT

For years prior to 2019, when claiming a loss from prior years for a S-corp (allowed due to an increase in basis), TT put 2 lines on the Sch E - one for the current year S-corp loss/profit that was at risk and one line titled PVA for the at-risk loss carryover that now was covered with new basis. These are all active participation - not passive. My sch E for 2019 is combining the prior year and the current year into one line. Is this a change in IRS reporting rules? Or is it in error?

Re: turbo tax s-corp PYA losses combined with current year losses

Anonymous_ — Wed, 14 Oct 2020 18:13:59 GMT

@gretch wrote:

My sch E for 2019 is combining the prior year and the current year into one line. Is this a change in IRS reporting rules? Or is it in error?

How are you entering your loss for the prior year? Did it transfer in or did you enter it in the K-1 section?

On a test return, I was unable to reproduce your results (i.e., combined on one line). Page 2 of Schedule E shows two separate lines (under nonpassive loss (column (i)).

Re: turbo tax s-corp PYA losses combined with current year losses

gretch — Wed, 14 Oct 2020 18:50:01 GMT

Thank you for looking at this. I appreciate it.

I had both passive loss carryover (from several years ago before I became involved in the business) AND at-risk loss carryovers. When I deleted the passive loss carryovers the loss from prior years shows on its own line as PYA.

To answer your question I was entered the at-risk loss carry over in the K-1 section.

So to summarize, when I entered both passive loss carryover and at-risk carry over, the prior year loss amount combined with the current year loss amount. When I got rid of the passive loss carryover, the prior year shows separately as PYA. I'm good now. The chances of me ever having the chance to use the passive losses is almost nil because of at-risk rules.

Thank you again.