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Returning Member
posted Apr 17, 2022 2:50:25 PM

Form 7203 line 3a error

I am having problems resolving what feels like a circular error.  3a states "enter the amount from Schedule K-1 line 1 (enter loss in Part III).  My K-1 line 1 is a loss/negative #.  But TurboTax won't let me enter a loss in 3a or a 0 because I get the error message "Line 3a cannot have a gain in Part 1 and a loss in Part III." 

 

How do I fix this? 

 

It is the only thing I need to resolve in order to file.

0 9 2078
9 Replies
Expert Alumni
Apr 17, 2022 3:53:53 PM

Part I is for the increases, so income, and Part III is for losses.  If your basis for 2021 is reduced by a loss, this amount goes in Part III to be calculated.  

Returning Member
Apr 17, 2022 4:54:19 PM

Hi,

 

Since I have 0 increase, then 3a should accept a 0, correct?

 

Expert Alumni
Apr 17, 2022 5:04:19 PM

I'm not certain if it does, but more likely you should just leave it blank.

 

@bmollo6454

New Member
Sep 24, 2022 3:13:20 PM

I'm having the same issue. Turbotax entered an amount in the "income" gain section (3a) and it entered the same value in the section 3 loss amount. It will not let me zeroize the loss section (there was only a gain for the business)....I cannot file my return. The only section I can edit is line 3a and if I put 0 it also does not work....however, even if it were to accept the zero for 3a....that would be wrong because I had a gain not a loss.

Level 1
Apr 14, 2023 8:17:48 AM

If anyone is still having this issue, I found a solution.  If you have a gain, make sure that Part III does not have any numbers (including 0's).  Also, when you delete the 0's make sure you also delete the decimal point after the 0.  Once all of the 0.'s are removed you can recalculate and this error should go away.  

Level 2
Feb 23, 2024 11:24:54 AM

This solution worked in TTD but not TTO

Level 2
Feb 23, 2024 11:43:19 AM

The problem was that the K-1 was bringing over 0. debt and the program was reading that as debt

Level 1
Apr 13, 2024 9:13:01 AM

Thank you, kind internet stranger. This worked for me. Go Aggies!

New Member
Sep 20, 2024 12:02:36 PM

Worked after deleting the 0 and everthing in the cell. Thank you.