942
California Form 6198 At-Risk Recapture Rules were not applied... Can anyone shed some insight into this diagnostic?
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10/24/22
Problem: Form 6198 lists a negative amount in Line 19a and no amount in Line 19b
Diagnostic. Diag 942 says California Form 6198 At-Risk Recapture Rules were not applied.
Analysis. See IRS Pub 925. Did the taxpayer deduct losses in any prior year?
Answer: No (In my case. YMMV)
Solution: In Screen 20.2, input -1 in Box* 156. (There is no need to enter -1 in the CA box adjacent to this one to clear the diagnostic.)
Epilogue: This diagnostic presents one of those valuable moments for learning Form 6198 and at-risk rules. I advise learning rather than a quick fix.
*Intuit uses the term code, which I think is vestigial. It probably served a purpose for programmers BITD. Now, the term box is more descriptive as tax preparers don't code, we input numbers to boxes.