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Help Clearing "Check this entry"- S Corp-Shareholder Stock & Debt Basis Limitation Worksheet

Forum|Forum|4 years ago
March 13, 2022
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Doing the Federal Review in Turbo Tax Business 2021 Desktop version.

Please help me clear this error.

Check this Entry message "Schedule K-1(name of shareholder)-Shareholder Stock & Debt Basis Limitation Worksheet: Debt 1 boxes: either the Formal Note box or Open Account debt box must be check when any line is populated on Part II, Sections B."

Section A where the Formal & Open Acct Debt check boxes are shows all blanks across all 3 debt columns.

Section B has a line 21 Debt basis at beginning of the corporations tax year. A "0" is entered under Debt 1 column, and blanks are in Debt 2 and Debt 3 Columns.

Since there was no Debt, I don't want to check either option, I can't override the 0. I tried deleting the form, but form and error came back.

Used TurboTax Business last year as well, found similar but not same worksheet, it had blanks and zeros for debt as well.

Thank you for any help.

TurboTax Business Windows

Best answer by Anonymous_

You might have to contact Support for this issue.

What is the TurboTax phone number? (intuit.com)

A

Anonymous_Answer

Employee

You might have to contact Support for this issue.

What is the TurboTax phone number? (intuit.com)

M

Mary100Author

Thank you!

W

WonderWoman11_2

Does your Schedule L line 21 list other liabilities? If so, are they evidenced by a "formal note"? Yes, then check it.

OR is it "open account debt"? Then, check this one instead.

And complete lines 16-20

Good luck!

O

ojedainspections

Employee

This is the first year this same issue has happened for us. There is loan the owner made to the company at the beginning which is still on the books. Nothing has changed. Wish I didn't have to go google the difference between formal and open note now. Why turbotax?????