S-Corporation Loss Deduction

Forum|Forum|11 months ago
July 21, 2025
2 replies
11 views

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?

ProSeries Professional

sjrcpa

Level 15

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.

R

richw1Author

Level 3

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

T

TaxGuyBill

Level 15

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)?

R

richw1Author

Level 3

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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