JCT1
Level 4

I currently have a client with two S-Corp K-1s, each has a sizable current loss and his basis in both is zero.  The Forms 6198 for both are the same to indicate no basis and both Forms 7203 indicate the current losses are disallowed.  One of the losses is properly omitted from Sch E whereas the other is not, it's shown as allowable loss on Sch A of K-1 Worksheet and on Sch E for one, even though the program clearly knows there is no basis.  The K-1s, 6198s and 7203s are each filled out the same for both, so why the inconsistent treatment?   I've tried exiting the program, everything but rebooting which is a royal pain and shouldn't be necessary.    The only difference between the K-1's is that the one for which the loss is properly handled is imported, since I also prep the S Corp return. but the other isn't- could that somehow  be causing this issue?

 

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