I am working on a 1040 in Pro Series. The client has an S Corp that had a loss for 2020. When I completed his S corp tax return Pro Series showed the 20000 loss on the k1. Then when I completed his basis statement it showed only 7000 of the 20000 Ioss could be deducted on his 1040 tax return. 

I'm in the 1040 now and I entered  the 20000 loss on the k1 because that is what it showed on the K1. I went to schedule E2 and checked off the box for that S Corp because it had a loss. E2 is showing the  loss as 20000. I don't know how to modify the 20000 on E2 to show the 7000 loss other than overiding the k1 to show the 7000 loss and attach the owner's basis statement to the tax return. I don't think that is the way to do it. I think the form 6198 comes into play here but if it does I don't see where any of the numbers should be entered to show the allowable loss of 7000.

Please advise how all these figures would flow on Pro  Serie Professional.

My email address is [email address removed]

Thanks,

Mike Fritz