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I have had a K1 (SCorp shareholder/active participant) for years. Last year my losses were limited by my basis. This year, how do I carryover those losses? What form?

Forum|Forum|5 years ago
April 10, 2021
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I tried entering it on page 3, column B, but it doesn't add it as an allowable loss the way it should. I'm probably not putting the right numbers in the right location. I tried form 6198, but it lumps this year's loss and last year's loss into box 1 and handles it all together. (I have more than enough basis this year to deduct both losses.) I looked at form 8582, but it didn't fill in correctly from TurboTax either. It also confuses me by its reference to passive activity, as all of the losses were incurred by at-risk activity in my business. It seems my only option is to figure the correct amounts on my own and enter them in box 1 of my K1. Do you know the correct way to do this? All of this data is entered correctly on my shareholder basis statement provided by the SCorp, but none of that data seems to get reported on my personal 1040 schedule K1.

TurboTax Online

Best answer by dvgmusic

Thank you. I finally found it on my cd version of TurboTax Home & Business. For anyone else looking for the same thing, here's where I found it:

Federal portion: select Personal Income on the top menu.

Scroll down to "Business Investment..." and "Schedule K-1."

In my situation, I selected SCorp and the K1 I wanted to work on. I clicked continue through all the options I had already inputted. On the "Other Situations" page, there are several checkboxes to pay attention to. The first one is for passive activity carryovers. The second is "all of my investment is at risk," and the third is "I have at-risk losses carrying over from 2019." In my situation, I had to not check the first one and make sure both the second and third were checked. That brought up interview fields to enter the numbers correctly. Now the losses are properly deducted from my income. (As I mentioned, I had plenty of basis this year to be able to deduct the losses.)

Thanks again for your kind reply. It helped me look at the interview with a new perspective.

J

JamesG1

In TurboTax Online Self-Employed, follow these steps.

Click on Federal down the left hand side of the screen.
Click on Income & Expenses across the top of the screen.
Under Your income and expenses you will find Self-employment income and expenses.
Click on Edit/Add to the right.
Edit the self-employment activity.
Scroll down to Carryovers, limitations, at risk. Click Edit to the right.

The at-risk rules prevent taxpayers from deducting more than their actual stake in a business. See also this TurboTax Help.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

D

dvgmusicAuthorAnswer

Thank you. I finally found it on my cd version of TurboTax Home & Business. For anyone else looking for the same thing, here's where I found it:

Federal portion: select Personal Income on the top menu.

Scroll down to "Business Investment..." and "Schedule K-1."

In my situation, I selected SCorp and the K1 I wanted to work on. I clicked continue through all the options I had already inputted. On the "Other Situations" page, there are several checkboxes to pay attention to. The first one is for passive activity carryovers. The second is "all of my investment is at risk," and the third is "I have at-risk losses carrying over from 2019." In my situation, I had to not check the first one and make sure both the second and third were checked. That brought up interview fields to enter the numbers correctly. Now the losses are properly deducted from my income. (As I mentioned, I had plenty of basis this year to be able to deduct the losses.)

Thanks again for your kind reply. It helped me look at the interview with a new perspective.

J

JamesG1

In TurboTax Online Self-Employed, follow these steps.

Click on Federal down the left hand side of the screen.
Click on Income & Expenses across the top of the screen.
Under Your income and expenses you will find Self-employment income and expenses.
Click on Edit/Add to the right.
Edit the self-employment activity.
Scroll down to Carryovers, limitations, at risk. Click Edit to the right.