1. Go to Federal Interview Form N-1 - K-1 Basis Information.
   • In box 30 - Passthrough entity number (Mandatory), enter the applicable entity number.
   • In boxes 40 through 43 - Computation of Basis information, enter information as applicable.
   • In boxes 60 through 75 - Increases to Basis information, enter information as applicable.
   • In boxes 90 through 101 - Decreases to Basis information, enter information as applicable.
   • In boxes 115 through 138 - Debt Basis information, enter information as applicable.
   • In boxes 150 through 173 - Other Increases/Decreases information, enter information as applicable.
2. Calculate the return.

• Note: Current year income, gains, losses, and deductions from the passthroughs are carried to the basis limitation worksheet automatically.

To enter in basis carryovers using the K-Series inputs:

1. Go to Federal Interview Form K-8 - K-1 Basis carryovers and Basis Information.
   • In boxes 30 through 167 - Basis Carryovers information, enter information as applicable.
2. Calculate the return.

To enter in basis carryovers using IRS K-1 1065:

1. Go to Federal Interview Form IRS 1065 - Schedule K-1.
   • In boxes 585 through 722 - Basis Carryovers information, enter information as applicable.
2. Calculate the return.

To enter in basis carryovers using IRS K-1 1120S:

1. Go to Federal Interview Form IRS 1120S - Schedule K-1.
   • In boxes 565 through 702 - Basis Carryovers information, enter information as applicable.
2. Calculate the return.

Note: If capital gains/losses are entered on the interview form D-1,  D-2, D-11, and/or D-12 will carry to the basis limitation worksheet.

To prevent capital gains/losses flowing from interview form D-1, D-2, D-11 and/or D-12 to the basis limitation worksheet:

1. Go to Federal Interview Form D-1A - Schedule D - Capital Gains and Losses.
   • In box 42 - Basis code, use the lookup feature (double-click or click F4) to select the code '2 - Gain or loss not to be included in basis calculation' (if applicable).
     • Or,
2. Go to Federal Interview Form D-2 - Form 4797 and Form 4684.

• In box 73 - Basis code, use the lookup feature (double-click or click F4) to select the code '2 - Gain or loss not to be included in basis calculation' (if applicable).

To view the basis limitation worksheet:

If losses exceed basis, carryovers are calculated and pro forma to the next year's return. Follow these steps to see the carryover report:

 To view this solution in worksheet view, see how do I produce the Basis Limitation worksheet using worksheet view in Individual tax.

• Calculate the return.
  1. Go to Fed Government (tab).
  2. Click K-1 Basis Lm. - K-1 Basis Limitation.
     • Click Part Basis. - Partnership Basis Worksheet
     • Click Scorp Basis. - S Corporation Basis Worksheet.
  • Notes:
    • Basis is calculated at the Entity level, however, At-Risk and Passive Activity Loss limitations are calculated at the Activity levels.
    • Due to this, K-1's entered with multiple activities are totaled together for the basis limitation and then separated back out for the purpose of the at-risk and passive activity calculations (if multiple limitations apply).
  1. Go to Fed Government (tab).
  2. Click Misc. - Miscellaneous.
     • Click C/O to 20XX. - Tax Return Carryovers to 20XX.