Partner in S corporation and partnership have loss. How i enter his basis balance from the basis statement generated by the partnership or S corporation tax return to his form 1040?r shareholder basis on his 1040

[Ismail9491]

pessaries professional software generate basis statement for shareholder in (s) corporation and partner in partnership. When i do the individual tax, with K-1 has losses. how i enter the basis on his 1040 to make sure losses are allowed?

Does roseries individual tax has a place to enter the basis coming from the partnership or (s) corporation return.

Why pro serious does not print statement similar to 199A QBI statement that allow us to enter it to on form 1040?

Thanks

[TaxGuyBill]

ProSeries does not limit losses due to Basis. 

1. You need to manually do it by only entering the allowable loss (if any). 
2. Manually make a note for next year.
3. If Basis is restored next year, you will need to manually enter the newly allowable loss next year as a separate K-1 (labeled as "PYA").

Don't forget Form 7203.

[Ismail9491]

Thank you,

I could not find form 7203 under forms?

In the past i used form 6198 at risk limitation and entered partner's basis there, was not sure if this is a good option to report partner's allowable loss from partnership or (S) Corp?

Since this is an important and complex calculation and need tracking from year to year. Pro series professional software may need to consider generating Basis and loss limitation statement with K-1

and Quick Zoom line under the personal tax, to enter the basis and losses limitation. This will be a great help for us to make sure we report the correct allowable losses from partnership and (S) Corp.

This is similar to section 199A (QBI) statement that is printed with the K-1 and we use it to enter the

QBI info to form 1040.

[TaxGuyBill]

Some ProSeries  user incorrectly use Form 6198 for Basis limitations, but it is incorrect to file that form for Basis.

Yes, ProSeries is SEVERELY lacking by not have a way to limit Basis.  I suspect that it will be coming soon (at least for S-corporation) due to the IRS not requiring Form 7203.