Where do I enter previously suspended due to basis limitation S-Corp loss in TurboTax?

Jason999 · ‎May 17, 2020

I had S-Corp loss of 10,000 in 2018. It was disallowed due to shareholder basis limitation on 2018 1040 Form. I now have enough basis in 2019 and want to enter the previously suspended 10000 S-Corp loss in TurboTax somewhere for 2019 return. Where exactly in the TurboTax software do I enter it?

Thanks.

Anonymous_ · ‎May 17, 2020

@Jason999 wrote:

I now have enough basis in 2019 and want to enter the previously suspended 10000 S-Corp loss in TurboTax somewhere for 2019 return. Where exactly in the TurboTax software do I enter it?

I sincerely doubt if this can be done in the Step-by-Step Mode in TurboTax. You will most likely have to use Forms Mode (available only in desktop versions of TurboTax) and also do an override.

Regardless, the result should be an entry in column (i) on Line 28 of Schedule E.

See https://www.irs.gov/instructions/i1040se#idm140609548986544

Jason999 · ‎May 17, 2020

Yes, thank you. It will go to that field eventually. But there still may be a better place to input this number because TurboTax tells me that it should go into K-1 worksheet somewhere, but I cant find the right place to input it there.

Anonymous_ · ‎May 17, 2020

@Jason999 wrote:

.....TurboTax tells me that it should go into K-1 worksheet somewhere, but I cant find the right place to input it there.

Yes, the figure would be entered in Section C on the K-1 worksheet but there still needs to be an override on that worksheet and it does not appear to propagate to Schedule E.

Jason999 · ‎May 17, 2020

Yes. I think this is a good one. This time TurboTax no longer shows red exclamation mark. You know the software and tax forms well!

Thank you.

I doubt that anyone will have a better idea. This suspended loss should have transferred from the previous return. Not sure why it didn't. I probably did not have it entered in the correct field in 2018 version.