Limiting K-1 losses to basis and at-risk limitations on an Individual return in ProSeries

This article will show you how to limit Schedule K-1 losses to basis and at-risk limitations for an Individual return in ProSeries Professional and ProSeries Basic.

For more Schedule K-1 resources, check out our Tax topics page for Schedule K-1 where you'll find answers to the most commonly asked questions.

Loss limitation due to basis limitation

Loss limitation due to basis limitation for K-1s isn't supported by the program. For suggestions on handling basis limitations, refer to the following articles:

• Common questions for the S corporation Schedule K-1 Worksheet in ProSeries
• Common questions for the Partnership Schedule K-1 Worksheet in ProSeries

For information on completing the 7203 see How to complete Form 7203 in ProSeries.

Loss limitation due to at-risk limitations

You can calculate loss limitation due to at-risk limitations by entering Information regarding at-risk limits on Form 6198.

Follow these steps to calculate loss limitation due to at-risk limitations:

1. Open the K-1 Worksheet for the partnership or S corporation:
   • From the Forms menu, choose Select Form to open the list of forms in the return.
     • For a partnership, type P on your keyboard and the K-1P worksheet will be highlighted. Click OK to open the form.
     • For an S corporation return, type S on your keyboard and the K-1SCorp worksheet will be highlighted. Click OK to open the form.
2. Scroll to Part II of the K-1.
   • This is information about the partner or shareholder, depending on which K-1 worksheet you need.
3. Check the box labeled Some Investment in Partnership/Corporation not at-risk.
4. Click on the QuickZoom button on the line next to QuickZoom to Form 6198 for at-risk limitation.
5. Enter all applicable information concerning your at-risk Limitations on Form 6198.