Sub-S Loss Limitation to Basis

[djack1040]

Sole shareholder has basis of $15300 in a 1st yr Sub-S. Startup year loss is $18000 with a year end accrual.

My software (Drake) is generating a K1 showing the loss of $18000.
What amount do I enter on E2 on the client's 1040?

Do I just reduce the amount shown on the K1 and only enter the loss allowed-$15300?

ps: The client has taken a reasonable salary.

[rosieea]

I don't know about Drake, but my software has a section on the K-1 input screen for at-risk input, & it will produce the 6198 and limit the loss accordingly.

[Brian EA]

Sole shareholder has basis of $15300 in a 1st yr Sub-S. Startup year loss is $18000 with a year end accrual.

My software (Drake) is generating a K1 showing the loss of $18000.
What amount do I enter on E2 on the client's 1040?

Do I just reduce the amount shown on the K1 and only enter the loss allowed-$15300?

ps: The client has taken a reasonable salary.

Try using the Shareholders Basis Worksheet.