topic Re: Where do I carryover box-1 ordinary income loss from my k1 since I don't have enough tax basi... in Business & farm

Where do I carryover box-1 ordinary income loss from my k1 since I don't have enough tax basis this year to claim it all?

Brookelyn — Tue, 14 Jul 2020 15:06:18 GMT

I receive a k1 for my llc multi-member business. This year I have approx. (80,000) loss in box-1 ordinary income. However, I only have about 20,000 in tax basis in my business, so I can only claim a (20,000) loss this year and I need to "keep" the other (60,000) loss to be used in subsequent years should I obtain more tax basis, then. Where do I input that remaining (60,000) loss so that TurboTax so that it can be carried over? This is not a capital loss (not a loss on investments - I have that, too), but rather an ordinary income loss from box-1 on my k1.

Re: Where do I carryover box-1 ordinary income loss from my k1 since I don't have enough tax basi...

DavidS127 — Tue, 14 Jul 2020 21:49:08 GMT

See the response from Community user AmeliesUncle that follows. TurboTax is not set up to limit Basis. The program tells you to only enter the amount you are allowed.

[Edited 7/14/2020| 2:48 pm PDT]

@Brookelyn

Re: Where do I carryover box-1 ordinary income loss from my k1 since I don't have enough tax basi...

AmeliesUncle — Tue, 14 Jul 2020 21:22:01 GMT

Although that is a cheating work-around, that is incorrect. Filling out the At-Risk limitation form is NOT the proper way to limit Basis and Form 6198 should NOT be filed with the tax return.

TurboTax is not set up to limit Basis. The program tells you to only enter the amount you are allowed.

Re: Where do I carryover box-1 ordinary income loss from my k1 since I don't have enough tax basi...

DavidS127 — Tue, 14 Jul 2020 21:59:21 GMT

Here is the screenshot example of the limitation instruction in TurboTax, referenced by AmeliesUncle: