Basis Limitations

[kfrebo]

I've entered information on Form 7203 pertaining to an S corporation, clearly indicating the taxpayer had no basis to deduct any losses in 2025. Form 7203 is linked to the S corporation K-1 input. The entire loss is being deducted on Schedule E Page 2 which I know isn't correct. What am I missing to get this corrected?

[IRonMaN]

Enter "zero" instead of the loss on the K-1 worksheet.  The worksheet doesn't talk to the 7203 in ProSeries.

[kfrebo]

Wow, that's disappointing. Thanks for the response!

[TaxGuyBill]

I agree with the entering zero.  However, if I remember correctly, I think that zero flows to the 7203, so you'll need to enter the 'real' number on the 7203.

[kfrebo]

Thanks for your response. Much appreciated!

[dascpa]

I agree with all the answers listed, but I add one more item. On the K-1 Worksheet Line 1 or 2 (whichever applies) I click on Supporting Schedule. I put in the K-1 number (example: 10,000) and then on the next line: Form 7203 Limitation <10,000> so the net is -0-. That way if I ever lookback at the file it'll help me rember why the K-1 doesn't equal the input screen.