Suspended Losses Reporting

[cpabsd]

I have an S corporation that had losses limited during 2005. In 2006 they had a great year and most of the losses should now be deductible. The Schedule E instruction say to report on separate line with "PYA" as the description. How do I do this with the ATX software? This is my final return to finish. I want to be done.

Thanks,

Bonnie

[Maribeth]

On your K-1 input sheet, enter the PYA as another S-corp name and use the same EIN. Then put your losses on the ordinary income line.

Maribeth

[kcjenkins]

Bonnie, on the K-1 Input form, cursor down to the section named Passive Carryovers and At-Risk Limitations, enter the info in the appropriate line(s), and the form will make the PYA notation for you.

[OldJack]

For a S-corp loss limited due to stock basis the 1040 for the loss year should have attached form 6198, " At-Risk Limitations". You then have the loss carryover established for the next years 1040.