Reporting loss schedule K-1 box 1

[Apui]

I have a 1065 schedule K-1 from an LLC partnership indicating a loss.

I was going to enter the full amount  from box 1 in Turbotax but I am not sure anymore after seeing the note on the screen that says "Do not enter a loss amount that is more than your basis."

On the schedule K-1, there is also line 20AH additional supplemental information that indicates that I have distribution in excess of partner basis.

Does this mean that I should enter $0?

Thanks in advance.

[Mike9241 · Accepted solution]

you can enter the loss but then you would have to indicate you are not at-risk which would limit the loss deduction to 0 (form 6198). it's important to keep track because should there be an event that creates positive at-risk, that loss can be used. distributions in excess of basis create t taxable capital gain that must be entered manually 1099-B wks. the gain is long-term or short-term depending on how long you've held the interest. 

[Apui]

Thank you for your quick response and for your advice. I appreciate it.

I did what you suggested but after entering the adjusted basis, Turbotax deducts the whole amount again.

Perhaps I am not entering the correct adjusted basis?

I entered the beginning capital account from Schedule K-1 as the adjusted basis on January 1, 2020 and I entered the amount of loss for the year as the decrease in basis amount.

Could you please advise?

Thank you.