How Do I Report K-1 1120S Allowed Loss Carryover on F 1040

david3

TP has a S Corp K-1 with a $10K 2024 profit and F 7203 shows $4K allowed loss carryover.

Per all the instructions and posts in the Community, I thought I could report $6K as ordinary business income on line one of the K-1 Wks.

However, when I do that, F 7203 doesn't show the $4K loss allowed and shows the prior year loss carryover as the loss carryover to 2025.

How do I get PS Professional to recognize the $6K profit instead of the $10K profit?

Thank you.

TaxGuyBill

I'm not sure about the interaction with Form 7203, but you are supposed to enter it as TWO separate K-1s.

One for the actual K-1. The second, named "PYA", for the Basis loss carryover.

View solution in original post

david3

OK, thanks.

I guess my brain is tired. I was thinking it was treated the same way as when a loss is disallowed - manually change the ordinary income on the K-1 Wks.

Appreciate the help!