Entering data from a k1 to the 1040

[Mike1040]

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

[TaxGuyBill]

ProSeries does not have a Basis worksheet for the 1040 to limit losses to Basis.

You need to MANUALLY calculate the allowable loss and only enter those amounts on the K-1 worksheet.

You need to MANUALLY carry over the unallowed loss.  When it is allowed in future years, you will need to enter that as a SEPARATE K-1, called "PYA".

You need to MANUALLY create a Basis statement to attach to the tax return.

[Mike1040]

Thank you TaxGuyBill for your quick response.

This is going to be a pain but I think I understand what you are telling me and I will attempt to follow your response.

Thanks again.

Mike

[Mike1040]

I can't believe that Pro Series doesn't have the worksheets and or forms to handle this type of a problem . You and I cannot be the only professionals who have had this problem.

Mike

[TaxGuyBill]

I agree.  I think that this is an extremely tax-101 thing that every software should do.  In my opinion, this is one of many things that shows Intuit's incompetence.

[jofijohnjoseph]

This is a frustration I share too.

Curious, does anyone know of any good programs/spreadsheets that allow for the calculation of basis so that we can add this form to a client's final tax returns?  Since Intuit refuses to do this basic task for us?

Thanks.