K 1 Shareholder reportable Ordinary Income

Forum|Forum|5 years ago
May 2, 2021
8 replies
46 views

My client received a K1 with an ordinary business income of $62,500, on the shareholder’s basis worksheet Page 2 there is a Total allowed loss of $90,365. My question is where I show the loss. Should it be on schedule A Passive Activity Adjustment to income and loss, column b

ProSeries Professional

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T

TaxGuyBill

@CHASSOCIATES wrote:

on the shareholder’s basis worksheet Page 2 there is a Total allowed loss of $90,365.

A Basis worksheet does not dictate claiming a loss.

You need to find out where that $90,365 came from and what it means. It *MIGHT* mean there was a prior loss that was not allowed on the 1040 due to Basis limitations. But that is ONLY a guess.

Once you find out the details about what the $90,365 means, we may be able to help you figure out how to enter it (if it is entered at all).

C

CHASSOCIATESAuthor

Level 3

Thank you for your prompt response, you are absolutely right. This is the K1 information

Part II Loans from shareholder Beginning of the year $3473

end of the year $3473

Ln 1 ordinary business income $62,500,

Ln 4 interest income $1,735

Ln 12 A Other deduction cash contribution $49

Ln 16 B Other tax-exempt income $525,329

Ln16 C Other tax-exempt income 2,375.

Ln16D Distribution $331,196.

Ln 17 A Investment income $1,735

Ln17V Section 199A information $62,500

total Loss and deductions applied against stock basis $90,365.

the loss was carryforward from 2019 was $87,941

Suspended Losses $86,811 (2019)

9

T

TaxGuyBill

@CHASSOCIATES wrote:

total Loss and deductions applied against stock basis $90,365.

the loss was carryforward from 2019 was $87,941

Suspended Losses $86,811 (2019)

Have you figured out what the three different numbers mean?

I don't quite remember if there is a place in ProSeries to enter it or not. I have stuck in my mind that you need to enter an entire new K-1 worksheet, but only enter the allowable carryover loss, and rather than the name of the corporation you call it "PYA" (use the actual EIN though).

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