Follow these steps to enter suspended passive loss carryforward from Schedule C in the program:
- Go to the Input Return tab.
- From the left of the screen, select Income.
- Select Business Income (Sch C) from the dropdown menu.
- At the top of the screen, click the three dots and choose Less Common Scenarios.
- Scroll down to the Prior Year Unallowed Passive Losses section.
- Under the Regular subsection, enter the Operating loss as a positive amount.
- Under the AMT subsection, enter the Operating loss as a positive amount.
The program uses the AMT amounts to compute the passive activity adjustment on Form 6251. If you don't know the AMT amount, enter the regular tax amount in both the regular and AMT subsections. This will prevent the program from computing an incorrect adjustment on Form 6251.