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K 1 Shareholder reportable Ordinary Income

CHASSOCIATES
Level 2

My client received a K1 with an ordinary business income of $62,500, on the shareholder’s basis worksheet Page 2 there is a Total allowed loss of $90,365. My question is where I show the loss. Should it be on schedule A Passive Activity Adjustment to income and loss, column b

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8 Replies 8
TaxGuyBill
Level 14

@CHASSOCIATES wrote:

on the shareholder’s basis worksheet Page 2 there is a Total allowed loss of $90,365.


A Basis worksheet does not dictate claiming a loss.

You need to find out where that $90,365 came from and what it means.  It *MIGHT* mean there was a prior loss that was not allowed on the 1040 due to Basis limitations.  But that is ONLY a guess. 

Once you find out the details about what the $90,365 means, we may be able to help you figure out how to enter it (if it is entered at all).

CHASSOCIATES
Level 2

Thank you for your prompt response, you are absolutely right. This is the K1 information

 Part II Loans from shareholder Beginning of the year  $3473

end of the year $3473

Ln 1 ordinary business income $62,500,

 Ln 4 interest income $1,735

Ln 12 A Other deduction cash contribution $49

Ln 16 B Other tax-exempt income $525,329

Ln16 C Other tax-exempt income 2,375.

Ln16D Distribution $331,196.

Ln 17 A Investment income $1,735

Ln17V Section 199A information $62,500

total Loss and deductions applied against stock basis $90,365.

the loss was carryforward from 2019 was $87,941

Suspended Losses $86,811 (2019)

 

 

 

9

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TaxGuyBill
Level 14

@CHASSOCIATES wrote:

total Loss and deductions applied against stock basis $90,365.

the loss was carryforward from 2019 was $87,941

Suspended Losses $86,811 (2019)

 


Have you figured out what the three different numbers mean?

 

I don't quite remember if there is a place in ProSeries to enter it or not.  I have stuck in my mind that you need to enter an entire new K-1 worksheet, but only enter the allowable carryover loss, and rather than the name of the corporation you call it "PYA" (use the actual EIN though).

 

 

 

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CHASSOCIATES
Level 2

Thanks again for your response. 

I know what it figures means :

Suspended from 2019  $87,941

loss 2020                          2,424

loss for 2020                   90,365

P.S this is a new client, loss carryover was not brought forward. 

If I create a new K1 PYA, loss for 2020 of (90365) will be on line 1? or I can put in suspended loss carryforward from the prior year?

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CHASSOCIATES
Level 2

2020

nondeductible non-cap expense $2,375 

ordinary business loss  $86,811 

 cash contribution                       $1,179    

Total Allowed Loss                     $90,365

current year loss     

Nondeductible expenses   $2,375

Cash Contribution                  $49

2019

Ordinary business loss    $ 86,811

Cash contribution              $1,130 

total loss to Carryforward $87,941

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CHASSOCIATES
Level 2

correction Disallowed loss 2019 $114,398 

Loss to carryfoward            2019 $87,941

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qbteachmt
Level 15

Is this other topic of yours the same issue, but asked more as a hypothetical exercise:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/shareholder-reportable-...

 

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"Level Up" is a gaming function, not a real life function.
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CHASSOCIATES
Level 2

my question was revised.

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