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    S-corp loss exceeds basis

    This question is for any ATX user that might be willing to comment. I'm good with switching to private message if that would be more efficient. The situation is that I've prepared an 1120S in my ATX software. The 2020 corporate return results in a $10,000 loss for the 100% shareholder. The shareholder has negative basis of $11,000. I'm having issues with the data entry of the K1 information into the ATX 1040 software. The 1040 software is not taking into consideration the negative basis because I'm not finding where to enter the basis information into the 1040 software. As a result, the 1040 is accepting the K1 loss and reducing AGI. My guess is that their is a worksheet that I'm not finding to enter the basis information. Hoping for some suggestions or advice on where to enter the basis information. Regarding this forum, not sure if it is considered acceptable to post tax software specific questions or not. If not, I'm glad to switch to private message with any ATX user that is willing to discuss. I want to respect the forum and those of you that read/post. Thanks.

    #2
    https://www.atxcommunity.com/index.php

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      #3
      In ProSeries, you need to MANUALLY limit that losses that you enter and MANUALLY carry over unused losses.

      I suspect that ATX may be the same.

      Comment


        #4
        As mentioned in one of the reply posts that some software may require the user to “manually enter the loss including any carry over unused loss”.

        Though you should always consult with your software provider about the issue as suggested by another reply post. Have you tried contacting the provider?
        Always cite your source for support to defend your opinion

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          #5
          Thanks for the posts. I haven't contacted ATX yet. I have found ATX to be somewhat lacking in the support department. Contacting ATX support is usually a last resort.

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            #6
            The link I gave you is for a NON-OFFICIAL ATX message board made up of ATX users who share information with each other. (I don't use ATX, so cannot help you re your specific issue.)

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              #7
              Originally posted by Hoosier View Post
              Thanks for the posts. I haven't contacted ATX yet. I have found ATX to be somewhat lacking in the support department. Contacting ATX support is usually a last resort.
              Have you tried manually entering the losses to see if that helps?

              If you are unhappy with the tech support you might try the site LION recommended to see if other users experienced the same scenario. It is sad that you pay for software and receive very little support! Maybe time to consider a change
              Last edited by TAXNJ; 07-12-2021, 05:31 PM.
              Always cite your source for support to defend your opinion

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