After completing form 7203 the K-1 loss is not fully deductible because of basis limitations. When the loss transfers to Schedule E page 2 the total loss is showing which is in error. Please advise if you are having the same issue or if you have any suggestions.
I see I have a similar issue with one of my clients. If I'm entering the limited loss manually, am I just overriding the field? I'm just wondering if I override it, will the proper carryover be calculated.
@JSK when you enter the K1, only enter the allowed amount of loss. Any amount not allowed this year will not be tracked by the program. You will have to manually keep track for future years.
So I don't have to do form 6198? I started to fill that out, incorrectly I'm sure, and I got it where it limits the loss, but I couldn't see where to limit the contributions flowing through. This will be a pain in the butt if I have to start tracking stuff like this manually.
Yep, pain in the butt. You will need to track manually. You can use the supporting statement for the K1 income line to track unallowed losses but the program otherwise will not.
And you're correct, F6198 is not what you want to use.
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