ProConnect HelpIntuit HelpIntuit

Resolving Lacerte diagnostic ref. 11118 -Amount of loss is entered as a Federal Basis Carryover

SOLVEDby IntuitLacerte Tax5Updated September 22, 2022

When preparing an Individual return where New Jersey is one of the states, you may encounter the following diagnostic:

  • An amount of loss is entered as a Federal Basis Carryover for a Partnership. An entry of -1 should be entered in the corresponding 'state if different' Basis Carryover code in order to prevent the NJ return from reporting any prior year loss amount. NJ tax law prohibits any carryover of losses, including Basis carryover amounts. (ref. #11118)

To resolve this diagnostic:

  1. Go to Screen 20.1, Passthrough K-1 Partnership Information.
  2. Scroll down to the Basis Carryovers section.
  3. Enter a -1 in the State, if different column and source to NJ  if the column has a federal Basis carryover amount for:
    • Ordinary loss,
    • Rental real estate loss,
    • Capital loss, etc...
  4. Repeat for any other Partnership K-1's with federal Basis carryover amounts.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.