I actively paricipated in my consulting business and because I over forecasted my business last year by hiriing additional help I didn't actually need resulting in a net loss in 2023. I have enough Stock and Debt basis in my company to take the loss. However, after completing the online 7203 form in TT, the total on Line 47 Part III showed the loss is allowable between Stock and Debt basis, Column C and D, respectively. However, TT showed my allowable loss is $0. Can someone explains to me how to fix this? I also tried entering the total as positive in Columns C and D and that makes no difference.
did you enter the loss in Part III line 35 column (a) as a positive number (assuming the loss is on line 1 of the k-1) and did you check all investment in the corporation is at-risk. if not, you see zero on schedule E page 2 for the corp.
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Thanks Mike. Yes, I have entered the loss as a positive number on line 35 as shown below. There is only one screen where TT asks about passive activity. I checked the box indicating all my investment is at risk.
For those who may be in the same situation, my problem has been resolved with the update from TT. Earlier this week after I opened TT to continue my taxes, TT ran the update. Then when I went back into the K1 and finished the Form 7203, it calculated my eligible loss correctly.