In 2022 I got the K1 of S-corp with a rental income of $3496 in box 2 of K1. Turbo tax asked me to complete 7203 when I put that number ($3496) in box 2 of K1 in preparation of 1040 of 2022 as I has had some loss in 2021.
After putting all the numbers in stock basis, loan basis, debt basis I had to put $3831 in column 37 b, the loss amount carried over from yr 2021.
This gives the following amount in row 47 (Total loss):
at column 47 b: $3831
at column 47 c: $3496
at column 47 e: $335
Turbotax instructs to change the amount in box 2 of K1 manually and to use negative sign if appropriate.
The instruction is confusing.
Should I use the amount : -$3496(e.g. minus 3496) or 0?
I will appreciate any help.
Thank you.
NI
After I complete 7203 Turbotax asks me to change the amount in box 2 of K1
If the S-Corp K-1 has a positive number in Box 2 for Rental Real Estate Income, you would enter that as a positive number on Form 7203.
Hi Miss Patricia,
I entered the followings in form 7203:
Part I:
1 Stock basis at the beginning of the corporation’s tax year: 0
3 (b): Net rental real estate income : 3496
11. Allowable loss and deduction items. Enter the amount from line 47, column (c): 3496
The rest as I mentioned in my previous message.
After completion of form 7203 TurboTax asks to manually enter the data in K1 box 2. Should I enterl neg 3496 or 0?
I appreciate your response.
thank you