@mark8080 Part III shows the pro rata allocation and tracks any loss or deduction carryforward. I will need more information as to is this input from yourself or is this TT generated. Normally this would mean there is some issue with basis or reporting tieing out. Form 7203 need USER data entry and is a relatively new form.
Shareholder Allowable Loss and Deduction Items in which column?
The corporate losses and other deduction items are limited to the sum of your stock and debt basis. When stock and debt basis is insufficient, and there is more than one type of loss or deduction item that reduces basis, the amounts allowed as a loss or deduction are allocated on a pro rata basis. See Regulations sections 1.1366-2(a)(4) and (5).
Loss and deductions in excess of basis are suspended and carried forward indefinitely and the character of the loss and deduction items is retained.
Column (a).
Enter the loss and deduction amounts for each item as reported on your Schedule K-1 (Form 1120-S).
Column (b).
Enter any loss or deduction items disallowed due to basis limitations in prior years that were carried forward.
Column (c).
If line 10 is zero, skip column (c).
If stock basis, as reported on line 10, is greater than the sum of column (a) and column (b), line 47, enter the sum of each line for column (a) plus column (b) in column (c). If stock basis, as reported on line 10, is less than the sum of column (a) and column (b), line 47, enter the pro rata amount on the corresponding line in column (c). The total allocation amount reported in column (c), line 47, can’t exceed the amount reported on line 10.
Column (d).
If line 29 is zero, skip column (d).
If column (c), line 47, is less than line 10, skip column (d).
If debt basis, as reported on line 29, is greater than column (a) plus column (b) minus column (c), line 47, enter column (a) plus column (b) minus column (c), in column (d) for each line item. If debt basis, as reported on line 29, is less than column (a) plus column (b) minus column (c), line 47, enter the pro rata amount on the corresponding line in column (d). The total allocation amount reported in column (d), line 47, can’t exceed the amount reported on line 29.
The allowable losses and deductions from columns (c) and (d) should be reported on the appropriate areas of your return (subject to any additional limitations).
Column (e).
If the sum of column (a) plus column (b) exceeds the sum of column (c) plus column (d), enter the excess in column (e) for each line item. If you disposed of all your stock, see Regulations section 1.1366-2(a)(6).
**I don't work for TT. Just trying to help. All the best.
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