Form 6198 with calculating just the portion on ne business loss from a K-1 that equals basis.

[Lois2020]

The clients basis in a partnership in lower than the loss from net business activity.  I have entered the K-1 information with the net business loss and have shown that the client materially participated in the business activities.  Then went to the Form 6198 and put in the client's basis in the partnership.  The program is showing the entire net business loss on Schedule E instead of the smaller basis amount and placing the rest of the loss as a carryforward.  Not sure what I have missed. If more information is needed. please advise.

[TaxGuyBill]

I know that some ProSeries users use Form 6198, but other than perhaps using it as a worksheet to calculate the amounts, Form 6198 should not be filed if the loss is limited due to Basis.

ProSeries does not support Basis losses.  That means you are supposed to manually calculate the allowable loss (or perhaps temporarily use 6198 as a worksheet to figure it out), then enter the allowable loss on the K-1, and manually carryover the unallowed losses to next year.

As for why the 6198 (as a worksheet) is showing the entire amount as allowed, I'm not sure.  Perhaps you are entering something wrong?

[Terry53029]

As @TaxGuyBill said ProSeries does not support tracking basis. What I do is use the supporting documents to put the amount on K1, then subtract basis limitation, that way the K1 will match what was received

[Lois2020]

Thank you very much.  This was helpful.