Answered: 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

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.

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!

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

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