how do I enter loan basis from my k1 to capture carryover losses

[deezwho]

I have a business that lost X dollars in 2020. It also lost Y dollars in 2019.

I loaned the company Z dollars during 2020 year.

Now on my K1 it shows income/loss of X for 2020. But I should be able to claim Z amount of the carryover loss against loan basis to further decrease my taxable income.

There is no where to enter this information in TurboTax as it doesnt let me access the full k1 worksheet with "loan basis" section??

[Anonymous_]

The loan simply increases your basis in the entity. It might serve to allow you to recognize a loss if you did not have sufficient basis to do so.

[Mike9241]

unless you know you have enough basis to take all carryover and current losses check the box for the question some investment is not at risk. then proceed to link to form 6198. where your at-risk amount is entered. from that form Turbotax should be able to determine the amount of allowable losses. if you know you have enough basis for all the losses check yes to all investment is at risk.

do realize that if you use loans to absorb losses, your basis in them is reduced.  if they are repaid when there is not enough income to restore their full original basis you will have income.