k-1 loss limited due to basis

[jgcpa]

How do I enter K-1 loss partially disallowed due to basis?  Will Proseries know how much to report on the sch E? Where is the basis worksheet? where do i indicate loss carryover due to basis limitation?

[TaxGuyBill · Accepted solution]

ProSeries does not limit it or anything in connection with that.

You need to only enter the amount allowed up the the Basis, and manually keep track of the unallowed loss to carry forward.

[ClintCPA]

1. Do you have a template that you have used to manually track the basis limitations since Proseries does not have a basis limitation workesheet?

[trish-33540]

Just trying to be sure I understand your solution to the loss limitation due to basis. You said to enter the amount up to the basis as a loss. Enter it where exactly?  Only way I see to do it is on the K-1 itself.  Then the carryover loss does not show up on the tax return anywhere, correct?  Next year, I will adjust the K-1 line one amount to reflect my calculated carryover, correct?

[TaxGuyBill]

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@trish-33540 wrote:

Only way I see to do it is on the K-1 itself. 

Then the carryover loss does not show up on the tax return anywhere, correct? 

Next year, I will adjust the K-1 line one amount to reflect my calculated carryover, correct?

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Yes.

Correct.

No.  It needs to be entered on the Schedule E on a separate line.

https://www.irs.gov/instructions/i1040se#idm140048554393680

As for your next question for how to do that, I'm not sure if ProSeries has a spot to do that, or if you need to enter it as a separate K-1 called "PYA".