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@ClintCPA wrote:

TaxGuyBill,

This ProSeries basis limitation issue is going to be the death of me!!!  I want to see if I can run a scenario by you.  Here it is:

S-Corp client has disallowed losses of $187.9k due to basis limitations from 2019. 

Beginning shareholder basis in 2020 is $0.  

2020 K-1 has $90.1k in ordinary income on line 1

$64.7k in available basis for 2020 to apply towards prior year losses.

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Wouldn't it be $64.7 in basis to use the CURRENT year gain (Box 1)?  So you would enter $64.7 on the K-1 worksheet, and the excess would get added to the other $187.9 to get carried to next year, right?

See comments below.