Disallowed loss in excess of basis

[cqod]

Ordinary buisness income loss on K1 (1120) in excess of basis should be suspended (as shown on form 7203) but loss carries to schedule e and reduces tax liability in TT. How do I fix this?

[Mike9241]

absolutely terrible programming by TurboTax, since on the 7203 it shows the excess loss as a carryover but still allows the full loss on Schedule E. The workaround is to check the box  "some investment is not at-risk" (it seems the programmers don't know that basis and at-risk can be different. You're only allowed the lower amount)

Then complete Form 6198, which will only allow the loss up to your at-risk amount, which you can pretend is the same as your basis. This way the allowable loss will show up on Schedule E and Form 7203

[cqod]

thanks for that info and yes that workaround works.

Think it should be an easy fix for TT to get it correct.