rbynaker
Level 13
I don't disagree with Bill.  Before somebody told me I could use the 6198 as a crutch to limit losses to basis, I always made two K-1 entries.  One to match the actual K-1, and another called XYZ Corp - Loss in Excess of Basis.  Then I'd plug in an amount of income for that K-1 equal to the excess loss.  Then some knucklehead invented bonus depreciation and I had to start having complicated spreadsheets to keep track of both federal and state losses in excess of basis since many states don't allow bonus depreciation.  And invariably there's some offsetting manual adjustment you need to make at the state level to make things work if you do have bonus depreciation.
0 Cheers