K1 for S Corp

[Unregistered]

Clinet came in with a k1 from a s corp with a ord loss line 1 of 3203 line 2 income 275 and line 8a long term loss of -467.Also had a worksheet showing losses limited to basis and basis is -8706.I know they don't get the loss as their loss exceeds their basis but do I still enter the info from the k-1 on the return and when I do the loss is carried to the 1040.Question is how do I get the loss not to carry to 1040

[veritas]

What software do you use?

[Unregistered]

software

I use turbo tax

[veritas]

Sorry can't help you.

[rosieea]

I don't know anything about TurboTax, but if it doesn't allow you to indicate on the K-1 input screen that some amounts are not at risk, you need to bite the bullet and get some decent software. At-risk basis should be computed, and Form 6198 should be used to carry forward the disallowed loss.

[Unregistered]

Would this loss be classified as non passive

[Bees Knees]

Would this loss be classified as non passive

It depends. Did the S corp shareholder materially participate in the business? If so, the loss is non passive. If not, the loss is passive, subject to passive loss limitation rules.