Thanks for confirming that $5K is taxable, but the only way I can get Proseries to show that, is to add $4K to Line 21 as  other Income and I am afraid Proseries will not track the $4K loss carryforward to the next year.  I don't know why that $5K distribution reported on the K-1 doesn't automatically flow over to line 9 of the Form 6198.  When I manually enter the $5K to line 9 of the Form 6198, I can't see that Proseries is using that in any of the calculation.  It appears that Proseries is totally ignoring the $5K distribution which doesn't seem right, or what other steps am I am missing?

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