S-corp loss exceeds basis

[Margaret CPA in OH]

I should know this but it's the first time outside of class years ago. S-corp losses exceed the basis for 2008 for sole shareholder. In construction, he's working off of huge credit card debt. It looks bad for the future, too. Meanwhile, how do I input the K-1 (in ATX) showing -$47,330 and not have it show up as deductible loss on page 1 against wife's Sch. C profit? Should I put 0 instead of the actual loss on the K-1?

[cred65]

I should know this but it's the first time outside of class years ago. S-corp losses exceed the basis for 2008 for sole shareholder. In construction, he's working off of huge credit card debt. It looks bad for the future, too. Meanwhile, how do I input the K-1 (in ATX) showing -$47,330 and not have it show up as deductible loss on page 1 against wife's Sch. C profit? Should I put 0 instead of the actual loss on the K-1?

You need to use Form 6198.

[Margaret CPA in OH]

I did add the form but couldn't figure out how to get it completed and matched up with the activity. I finally input what I think is correct on line 11 worksheet for investment. I assumed that Account payable for the activity included loans, payroll taxes, and credit card debt. Anyway, I still don't understand "how did it know" which activity to match up but it seems to have worked! Thanks for support.