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jlondon11
Returning Member

Where are shareholders' allowable debt basis losses reported on line 30 of K-1 worksheet reported?

I filed my final 1120S return in 2024 and need to amend it.  I was the only shareholder.  Prior to closing, the company had a stock basis of $28k.   Prior to closing, I had an outstanding shareholder loan of $57k. An accountant I consulted with at the time told me I could not take any losses, because the loans represent losses already passed through to me.  So the return was filed without reflecting the long-term loss.  

 

I had to file in Nov. 2024 before the 2024 forms were released, so I could not use Turbo tax, so I sent the return is as prepared by the accountant and the return was accepted.  I bought Turbo Tax business to see I could get a different outcome.  The 1120s K-1 shows long-term losses of stock basis, but loss of debt basis reported on line 30 of the worksheet seems to flow nowhere, even though both are shown as long-term capital losses in Part III of the worksheet.  Why doesn't the K-1 show the total of losses of stock and debt basis as a long-term capital loss?  I looked at the various codes for line 16 and line 17, but none seem appropriate.  

 

On the 1040, do I report reduction in debt basis as a long-term capital loss on Schedule D?  Is it considered a security? Should it be reflected on schedule E or Schedule 1?  The challenge with that is that there was no rental activity last year, and no income.  Activity was simply closing out the business.  So am I still a real estate professional?

 

On the personal return, a QBI carryover loss of $36k showed on schedule 1 as a Net Operating Loss.  While my husband is still working, he has W-2 income.  My understanding is that you can only take those losses again QBi income, so I assume the flow-through on the 1040 is a mistake, and I can't take that deduction?

 

Thank you for your help.

 

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