First year LLC. Client, an active member of the group, contributed $12,000 cash. His 1065 Sch K-1 shows loss of $16,400. His loss should be limited to his basis of $12,000, but where do I enter the basis info in the ProSeries 1040 program?
I could check the "some investment not at risk" box on the K-1 worksheet and then use the 6198. But shouldn't the basis limitation be applied before the at-risk limitation? If so, how do I do this in ProSeries?
Are the basis and the at-risk amounts the same in this case? Any consequences with skipping directly to the at-risk limitation when the basis and the at-risk amounts are the same?
I could check the "some investment not at risk" box on the K-1 worksheet and then use the 6198. But shouldn't the basis limitation be applied before the at-risk limitation? If so, how do I do this in ProSeries?
Are the basis and the at-risk amounts the same in this case? Any consequences with skipping directly to the at-risk limitation when the basis and the at-risk amounts are the same?