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Level 4
June 14, 2021
Solved

basis limitations s corp

  • June 14, 2021
  • 1 reply
  • 20 views

Have an individual who has a K-1 with a loss but due to basis limitations cannot take the loss - where/how is that entered on the 1040?

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Best answer by TaxGuyBill

Nowhere on the current return.

You only enter the allowed amounts from the K-1, then manually carry over the unallowed amounts to future years when Basis is restored.

1 reply

Level 15
June 14, 2021

Nowhere on the current return.

You only enter the allowed amounts from the K-1, then manually carry over the unallowed amounts to future years when Basis is restored.

Ron42661Author
Level 4
June 15, 2021

Thank you - was hoping the program tracked it. I appreciate the response