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Limiting K-1 losses to basis and at-risk limitations on an Individual return in ProSeries

SOLVEDby IntuitProSeries Basic8Updated July 13, 2022
 

Form 7203 is now available in ProSeries 2021. For information on generating the new form see How to complete Form 7203 in ProSeries.

This article will show you how to limit Schedule K-1 losses to basis and at-risk limitations for an Individual return in ProSeries Professional and ProSeries Basic.

Loss limitation due to basis limitation

Loss limitation due to basis limitation for K-1s isn't supported by the program. For suggestions on handling basis limitations, refer to the following articles:

Loss limitation due to at-risk limitations

You can calculate loss limitation due to at-risk limitations by entering Information regarding at-risk limits on Form 6198.

Follow these steps to calculate loss limitation due to at-risk limitations:

  1. Open the K-1 Worksheet for the partnership or S corporation:
    • From the Forms menu, choose Select Form to open the list of forms in the return.
      • For a partnership, type P on your keyboard and the K-1P worksheet will be highlighted. Click OK to open the form.
      • For an S corporation return, type S on your keyboard and the K-1SCorp worksheet will be highlighted. Click OK to open the form.
  2. Scroll to Part II of the K-1.
    • This is information about the partner or shareholder, depending on which K-1 worksheet you need.
  3. Check the box labeled Some Investment in Partnership/Corporation not at-risk.
  4. Click on the QuickZoom button on the line next to QuickZoom to Form 6198 for at-risk limitation.
  5. Enter all applicable information concerning your at-risk Limitations on Form 6198.

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