Basis Limitation

Forum|Forum|6 years ago
April 27, 2020
2 replies
49 views

How should I be entering/documenting basis limitation on individual return for S-corp K-1. Client basis went negative this year, but I only see worksheets for passive activity and at risk loss limitation and no basis computation worksheet. Is there a basis computation worksheet (with calculated limitations)? If not what is everyone doing to work around this?

ProSeries Professional

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Best answer by Accountant-Man

PS does not have a basis limitation worksheet.

I use the 6198, at risk.

Accountant-ManAnswer

Level 13

PS does not have a basis limitation worksheet.

I use the 6198, at risk.

** I'm still a champion... of the world! Even without The Lounge.

H

HarvestAuthor

Level 3

I wish they would add a separate sheet for that calculation it would be more appropriate, but at risk worksheet will work. I wonder if Lacerte has that worksheet, but obviously this is not the place to ask that question.

S

sheri414

Level 3

How are you making Form 6198 work? I have the info filled in and in Part IV of 6198, ,it shows $-27,442 as deductible loss and $16,401 as amount at-risk at end of year. Yet the full loss of $39,944 is flowing to schedule 1. I cannot figure out how to make it only allow the loss up to their basis. What am I doing wrong?

F

frank1

Level 3

We enter a separate entry for Sched E and add back the limitation. So, if the basis "went negative" by $1000, we would have line 2 read "ABC LLC - basis limit adjmt" and enter $1000 as income. This gives us a little better trail, and we maintain a worksheet for any unused/limited losses.

J

jeff-brintonfair

Level 2

That is great, but we shouldn't have to manually do anything for S-Corp basis other than keep track of it in the 1120S software, which should fully download into 1040 module. All Excess Distributions and Excess SH Loan Repayments should be in the SH's 1040 module after the K-1 is imported from 1120S module. The 1040 module should automatically limit based on the Basis Sch.

H

HarvestAuthor

Level 3

I totally agree. Is there a way to suggest the change and is intuit responsive to requested changes?

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