richw1
Level 2
‎07-21-2025 04:55 PM

I have entered my client's K-1 for their S-Corp which shows approx $100K Loss.  I've filled out Form 7203 to justify basis in the S-Corp in order to deduct the loss.  The modified adjusted gross income is approx. $1.3 million.

The problem is I can't get the loss to carryover onto Sch E, which should populate Sch 1 and transfer to the 1040.

Am I missing something?

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sjrcpa
Level 15
‎07-21-2025 06:49 PM

Is it a passive activity?

If it isn't, did you tell the software it was, by mistake/default?


The more I know the more I don’t know.
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TaxGuyBill
Level 15
‎07-21-2025 07:33 PM

As was mentioned, did you check the "Materially Participated" box next to Box 1 on the K-1 worksheet (assuming they actually did Materially Participate)?

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richw1
Level 2
‎07-21-2025 08:36 PM

Thanks for your response!

It ended up being an accidental override I must have done by mistake....I had to cancel the override and all is good now.

Thank you!

Rich

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richw1
Level 2
‎07-21-2025 08:37 PM

Thanks, I checked everything...and ended up being an accidental override I must have done...found it....cancelled the override and fixed the issue.

Thanks for your response.

Rich

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