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K-1 Basis Loss Limitation

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K-1 Basis Loss Limitation


I'm having issues with Tax Advisor accurately reflecting 2023 S Corporation Income if there is a basis loss carryover being reported from 2022 to 2023 in my tax software, Lacerte.

When I input K-1 net profit for 2023 baseline, it does not reduce this net profit by the carryover losses. As an example, my client has carryover losses of $88,000. If I input the S Corporation Income as $80,000, the S Corp income total is $80,000 (see screenshot below).

On a related note, there is no place on the Pre-strategy baseline screen to confirm and/or adjust an owner's basis & applicable carryovers for a pass-through entity. Can this be added for these types of entities?


Tax Advisor - Basis Loss Limitation Issues.png

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