Basis is 0, no money at risk, yet TT insists on creating a 6198, no matter what it seems, including reporting allowed losses stemming from passive carryovers as income in 6198. Also, the only options to select in K-1 Part II (f) is ALL or some investment is at risk, not NO investment at risk. What gives? Tax year 2019.
Can disallowed losses due to basis limitation be reported on form 6198 for a passive s corp shareholder?
i thought there was an answer from someone else. Turbotax does not track basis so losses would be allowed unless you use the at-risk form. For most private S-Corps basis and at-risk numbers are the same. in your case 0. to prevent the losses from being deducted in Turbotax,
step-by-step mode
1) check the box I have at-risk losses carrying over from 2018. do not check that you have passive activity losses carrying over
2) you do not enter the carryover as a passive loss carryover. as you go through the screens you should come to one that asks about at-risk carryovers. that's where it gets entered.
3) you'll come to a page that asks you to choose between the simplified method and the detailed method. choose one. the results will be the same as long as the lines are properly completed.
detailed method 6198 line 19b = 0
simplified method adjusted basis 1/1/2019 = 0
let's say $10K current year income $20K at-risk loss carryover
line 1 of the 6198 would show a -$10K
schedule e page 2 would show the $10K of income offset on the next line by PYA loss $10K = net zero
your original post was a little confusing to me in that it seem to say the 6198 was reporting income.